Global markets are witnessing a strong and sustained rally in precious metals, with gold soaring to new all-time highs and silver climbing sharply. This surge is primarily driven by a combination of:
· Geopolitical Tensions: Ongoing conflicts and global instability are boosting safe-haven demand.
· Central Bank Purchases: Aggressive gold buying by central banks, particularly from emerging markets, is creating a structural support.
· Inflation & Rate-Cut Expectations: Anticipation of central bank rate cuts later in 2024 is pressuring bond yields and the US Dollar, making non-yielding metals more attractive.
· Silver's Dual Role: As both a monetary metal and a key industrial component in solar panels and electronics, silver benefits from both investment and green-energy demand.
While the momentum is strong, investors should watch for key risk factors such as a resurgence in the US Dollar, higher-than-expected interest rates, or a sharp shift in risk sentiment that could prompt profit-taking. The rally reflects a broader search for tangible assets in an uncertain macroeconomic and geopolitical landscape