Gold is poised to achieve its best weekly performance since 2008, driven by a surge in demand following Donald Trump’s recent provocative comments regarding tariffs on Greenland.
Gold prices rose to $4,970/oz at 23:08 pm on Thursday evening in the spot market, consolidating overnight at $4,930/oz, gaining 7% on the week. Silver hit $101.8/oz at 1:24 am yesterday, following gold and lifted by demand for solar panels and EVs. Goldman Sachs raised its gold forecast to $5,400/oz, likely drawing further retail attention to precious metals markets and supporting the rally.
Silver prices rose above $100 an ounce for the first time ever, while gold neared $5000 an ounce. Investors are piling into safe-haven assets amid geopolitical turmoil.
Bullion climbed around 8% over the past five trading sessions, pushing prices close to the $5,000 (£3,673) an ounce mark — its most powerful weekly rally since the depths of the global financial crisis nearly two decades ago. Silver joined the surge, breaking above $100 an ounce for the first time on record, underscoring the breadth and intensity of the precious metals rally.
This unprecedented political climate has led investors to seek refuge in precious metals, steering them away from the US dollar. Market analysts suggest that Trump’s unpredictability has heightened economic uncertainties, prompting a notable flight to safety among investors.
The growing appeal of gold is evident, with savvy investors shifting their portfolios to hedge against potential currency volatility. Given the current geopolitical tensions and economic concerns, many are wary of asset classes that may be vulnerable to abrupt changes in market sentiment.
As gold prices continue to rise, it is essential for market participants to remain vigilant and informed. Understanding the underlying factors driving these trends will be crucial in navigating the evolving financial landscape.
While the situation remains fluid, the recent market behaviour underscores the significant impact of political events on financial markets. Investors are advised to carefully assess their strategies in light of these developments.
The implications of this week’s trading activity may have lasting effects, not only on gold but also on broader market dynamics. Observers will be keenly monitoring how this situation unfolds in the coming days.
