Gold, Silver Prices Surge to Record Highs Amid Geopolitical Tensions
Gold and silver prices have surged to record highs, driven by geopolitical tensions and central bank policies. However, experts warn that a shift in these factors could reverse the trend. Önder Çiftçi, founder and CEO of Ophirum GmbH, shares insights into the current state of these precious metals.
Geopolitical uncertainties, such as the Russia-Ukraine war and political instability in France, have pushed investors towards safe-haven assets like gold and silver. The recent U.S. government shutdown also acted as a bullish catalyst for prices. Gold hit an all-time high of $3,922.70, while silver reached a 14-year peak of $47.825.
However, a potential cease-fire in the Russia-Ukraine conflict or peace in the Middle East could calm geopolitical tensions, reducing demand for these metals. Additionally, an end to the easy monetary policy cycle from major central banks could decrease demand, as lower interest rates have been boosting precious metal prices. Deteriorating technical indicators, such as significant price drops or Relative Strength Index (RSI) divergence, could also signal the end of the bull runs in gold and silver.
On the other hand, de-dollarization efforts by countries like Brazil, Russia, India, China, and South Africa are bullish for gold and silver. Lower crude oil prices could negatively impact the raw commodity sector, including metals, but this has not yet significantly affected gold and silver prices. Long-term technical charts show that gold and silver are in price uptrends.
Gold and silver prices have benefited from geopolitical tensions and central bank policies, reaching record highs. While de-dollarization efforts and long-term trends support these metals, a shift in geopolitical conditions or central bank policies could reverse the trend. Investors should closely monitor these factors and technical indicators for potential changes in the market.
