🔥Gold (XAU) and silver (XAG)🔥 prices have recently soared to record highs, driven by increased safe-haven demand amidst global economic uncertainty, geopolitical tensions, a weaker US dollar, and expectations of US Federal Reserve interest rate cuts.
Record Prices: Spot gold recently hit a new record near $4,950 per ounce, while spot silver surged to around $99 per ounce. In local Indian markets, prices also touched all-time highs, with MCX gold nearing ₹1.60 lakh per 10 grams and silver approaching ₹3.5 lakh per kg.
Geopolitical Drivers: Renewed concerns over global trade conflicts and political instability (such as the "Greenland saga") have prompted a massive capital flight into safe-haven assets like gold and silver.
Economic Factors: The weakening of the US dollar and growing expectations that the US Federal Reserve will cut interest rates later in 2026 have made non-yielding assets more attractive.
Industrial Demand for Silver: In addition to safe-haven demand, silver is also seeing strong demand for industrial uses, particularly in electronics and clean energy technologies, which has fueled its sharper rally compared to gold in recent times.
