Both gold and silver prices rose violently in late trading on Friday, with the gold price breaking through the previous high of 740 and the silver price climbing to an 11-year high. As for the future trend of gold, many institutions and analysts said that the gold price still has room to rise in the future.
This sharp increase in price may be related to the following factors:
Market risk aversion: Geopolitical conflicts and uncertainties have led to rising risk aversion in the market. Gold and silver, as traditional safe-haven assets, are usually favored by investors in such circumstances.
Inflation expectations: Market concerns about inflation may also be a factor driving the price of precious metals. In the case of rising inflation expectations, investors may seek hard assets such as gold and silver to preserve their value.
Fed policy expectations: Market expectations of possible interest rate cuts by the Federal Reserve may also be a factor driving precious metal prices higher. Rate cuts typically reduce the opportunity cost of holding cash, thereby increasing the appeal of non-interest-bearing assets such as gold and silver.
Industrial demand: In addition to being an investment asset, silver has a wide range of industrial uses, including electronics, solar panels, etc. As the global economy recovers and industrial production increases, demand for silver may also drive its price up.
Coincidentally, the mainstream coins in the cryptocurrency circle and the entire market sentiment have been aroused. How do you think the market will develop in the future?
