Gold Surpasses $5,200 per Ounce on Weaker Dollar, Silver Hits New Highs

New York | EcoPulse24

Precious metals continued attracting hedging flows as the US dollar plummeted to its lowest level in four years, with the US administration expressing comfort with a weaker currency to support export competitiveness. This policy and political backdrop, coupled with regulatory uncertainty in Washington, has strengthened demand for safe-haven assets and driven prices to unprecedented levels.

Gold (Price): Surpassed $5,200 per ounce during Wednesday trading, reaching new all-time highs.
Gold (Performance): Up nearly 20% since the start of the year.
Gold (Structural Support): Ongoing central bank purchases and sustained positive inflows into gold ETFs.

Silver, meanwhile, continued its upward trajectory at an even faster pace, benefiting from similar dollar and policy dynamics, and additional demand drivers in Asian markets.

Silver (Price): Rose to around $115 per ounce, approaching record highs.
Silver (Performance): Jumped nearly 60% year-to-date.
Silver (Flows and Market): Strong retail investor demand in China, with trading in a specialized silver fund suspended after premiums surged above underlying asset values; some industrial output has shifted from jewelry to 1 kg silver bars.

On the monetary policy front, all eyes are on the Federal Reserve, which is expected to hold interest rates steady, while markets focus on signals regarding the timing of the next rate cut.

EcoPulse24 Analysis: The weak dollar has become a central driver for metals prices, blending political messaging favoring a softer currency with regulatory and monetary uncertainty. This mix bolsters the hedging narrative and keeps investment demand elevated. Silver shows greater sensitivity to speculative flows and evolving industrial demand, explaining its outperformance relative to gold. The continuation of this trend depends on the tone of US policy and timing of monetary shifts, with precious metals remaining top hedging tools as long as dollar pressure persists.