The precious metals market returned to the focus in Friday's session, when gold prices surged by 78 USD, closing at a superiorly high level, while silver also recorded an increase of 0.46 USD. This development reflects the clear return of demand for safe-haven assets in the context of macroeconomic instability still prevailing.
The consensual increase of the two precious metals shows the sustainable attraction of "hard" assets in a volatile global economic environment, where monetary policy expectations are constantly changing and geopolitical tensions show no signs of cooling down.
The $78 increase in gold in one session is considered one of the most decisive gains in recent times, reflecting the convergence of many supporting drivers. Notably, developments in the money market play a key role as the USD weakens, thereby reducing the cost of holding gold for international investors and increasing the attractiveness of this precious metal on a global scale. At the same time, real yields - a factor that often puts pressure on gold - show signs of cooling down, opening up room for buying to return.
Capital inflows into gold ETFs recorded a clear improvement, showing that institutional capital is returning to the market, instead of just being short-term speculative as before. Along with that, the buying activity of central banks - the structural pillar of the market in the past two years - continues to play a "supporting" role, helping to limit the risk of deep correction. Many emerging economies still maintain a strategy of diversifying reserves, thereby creating a stable demand for gold.
In the silver side, the increase of 0.46 USD, although not large in absolute value, is of noteworthy technical significance. Silver is considered an asset with a "high beta" compared to gold, often reacting more strongly in up-down cycles.
This increase not only strengthens the positive trend of silver but also reflects the spillover effect from gold. At the same time, silver also receives support from industrial demand, especially in the fields of renewable energy and electric vehicles - industries that are playing a key role in the global economic transition process. This creates a double advantage for silver over gold, which mainly relies on its sheltering role.
The gold/silver ratio - an important indicator reflecting the relative value between the two metals - is currently still maintained at a high level compared to history. This reinforces the view that silver has more room to increase in the medium term as the valuation gap gradually narrows. In previous cycles, whenever gold maintained an upward trend, silver tended to accelerate more strongly to "catch up", attract speculative and investment cash flows.
In the coming time, the market will focus on monitoring a series of decisive factors. Policy messages from the US Federal Reserve (Fed) continue to be a key variable, as any signal of interest rate easing can become a strong catalyst for gold. In addition, inflation developments, the gold accumulation rate of central banks, along with global geopolitical hotspots will continue to shape the short-term trend of the precious metals market.
Overall, the recovery of gold and silver is not simply a technical reaction, but reflects a larger picture: investors are returning to defensive assets in a context where systemic risks have not disappeared.
