Precious metals, led by gold and silver, continued their upward trend today, posting further gains that bolster their appeal as safe havens and investment assets. This was directly supported by the decline in the US dollar's performance against other major currencies. These price movements confirm the continued buying momentum in the commodities and metals markets.
Gold performance in spot and futures transactions
In trading details, gold saw a notable rise in spot transactions, increasing by 1.4% to reach a record high of $5,029.09 per ounce. This significant rise follows a strong upward trend in gold prices last Friday, when they jumped by nearly 4%, reflecting investor optimism about the precious metal's future.
On the futures front, the picture was not much different, as US gold futures for April delivery increased by (1.4)%, settling at a level of (5051) dollars per ounce, indicating expectations of continued price strength for the metal in the near term.
Silver and other metals: Continued gains
Gold wasn't alone in this rise; silver, another highly sensitive asset to market fluctuations, followed suit. Silver climbed 2.5% in spot trading, building on the significant 10% gains of the previous session, highlighting the sharp price volatility and high speculative opportunities currently present in the silver market.
As for the platinum group metals, they followed the same positive trend; the price of platinum rose in spot trading by 1.8% to reach $2,134.18 per ounce. Palladium also recorded a similar increase of 1.8%, reaching $1,737.75, reflecting a recovery in demand for both industrial and precious metals.
Economic context and the impact of the dollar
This collective rise in metals is closely linked to the traditional inverse relationship between the US dollar and the prices of dollar-denominated commodities. When the dollar weakens, metals like gold and silver become less expensive for holders of other currencies, stimulating demand and driving prices higher. The sustained gains at such a significant rate also reflect investors' reliance on tangible assets to hedge against currency market volatility and potential economic risks, reinforcing gold and silver's status as stores of value during times of financial uncertainty.
