Silver Hits $100 for the First Time Ever as Gold Nears $5,000
Earlier this week, precious metals were initially boosted by Donald Trump’s attempts to assert control over Greenland.
Quick overview
- Geopolitical risks and erratic policy swings from the Trump administration are driving demand for precious metals.
- Gold and silver reached record highs as investors sought safe havens amid U.S. policy uncertainty.
- Concerns over potential political interference at the Federal Reserve are further supporting precious metal prices.
- Markets are also reacting to inflation risks and increasing sovereign debt levels globally.
Geopolitical risks stemming from the erratic policy swings of the Donald Trump administration, along with concerns over a potential loss of independence at the Federal Reserve, are keeping demand for precious metals elevated.
Gold and silver hit record levels on Friday as investors sought safe havens amid uncertainty surrounding U.S. policy and fears of political interference at the Federal Reserve.
Gold rose 1.5% to $4,985 an ounce after reaching a record high of $4,989.54. Silver, supported not only by safe-haven demand but also by strong industrial use, jumped 5% to $101.17, surpassing the $100 mark for the first time ever.
Precious Metals Drivers
Geopolitical tensions and an unconventional U.S. presidency continue to underpin strong demand for the yellow metal.
Earlier this week, precious metals were initially boosted by Donald Trump’s attempts to assert control over Greenland and his threats to impose additional tariffs on countries opposing U.S. policies. Although the U.S. president walked back those statements on Wednesday at the World Economic Forum in Davos—ruling out military force or tariff-based coercion—gold continued its upward momentum.
Frequent policy reversals by the Trump administration have fueled an environment of uncertainty in the United States, pushing investors away from the dollar and U.S. Treasuries. At the same time, fears that the Federal Reserve could come under political influence have further supported precious metal prices while weighing on the dollar.
The U.S. Department of Justice has launched an investigation into Federal Reserve Chair Jerome Powell, related to congressional hearings over renovation work at the Fed’s headquarters. Powell has dismissed the probe as a “pretext” aimed at removing him from office.
Finally, markets are also seeking protection against persistent inflation risks and rising levels of sovereign debt worldwide.
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