Gold, silver, platinum hit record highs: What's driving the surge?
What's the story
Gold, silver, and platinum have all hit record highs on Friday. Gold surged to $4,966.59 per ounce, while silver and platinum jumped to a record high of $97.44 and $2,684.43 per ounce, respectively. The main drivers behind these price surges are a weaker US dollar and global tensions that have investors seeking safer investment options.
Market dynamics
Dollar's decline boosts gold's appeal
The dollar index slipped to its lowest level in over two weeks on Friday, lowering the cost of dollar-denominated metals for overseas buyers. Markets continue to expect the Federal Reserve to roll out two quarter-point rate cuts in the second half of the year, a scenario that boosts the attractiveness of non-yielding gold. Some analysts believe that if these trends continue, gold prices could rise even further by the end of this year.
Investor behavior
Geopolitical tensions fuel demand for precious metals
The rise in geopolitical tensions is also pushing investors toward precious metals as a safe haven. This trend is not just limited to gold but extends to silver and platinum as well. Silver's price hike is further supported by strong industrial demand and investors buying it alongside gold.