Gold experienced its most significant weekly increase in five years, driven by economic uncertainties and ongoing trade tensions that have fuelled a surge in safe-haven investments. The price of gold reached $US4380 per ounce on Friday, reflecting growing instability within credit markets. This surge underscores investors’ concerns regarding various global factors.
Daniel Hynes, a senior commodities analyst at ANZ, noted that anxieties surrounding the Federal Reserve’s independence, political instability, tariffs, and geopolitical tensions are sustaining robust strategic investment interest in gold. These factors collectively contribute to gold’s appeal as a secure asset during times of economic volatility.
Silver also experienced a notable rise, surpassing a high established in 1980 and demonstrating an increase of over 85 per cent year-to-date. The tightness observed in the London market has triggered a global search for the metal. Hynes highlighted the elevated borrowing costs, with one-month annualised borrowing costs hovering around 20 per cent, further indicating the intense demand for silver in the current market environment.
Commodities analysts are closely watching market dynamics, noting that investor sentiment is shifting in response to global events.
