Silver has risen again. It is the strongest commodity outside the cryptocurrency market. Today, let’s talk about the main reasons for this surge.
First of all, the war in the Middle East is getting more and more intense! Yesterday we only knew that the tension between Israel and Hamas was getting stronger and stronger, but this morning we heard that the Israeli army directly fired at more than 10 UN shelters in the Gaza Strip. There were heavy casualties, and nearly 200 lives were tragically lost.
This incident directly caused the price of silver to soar by 1.4% as soon as it was released, directly soaring from the opening price of $30.353 to a high of $30.767. Obviously, the expansion of the Middle East incident has once again caused a surge in safe-haven funds.
Meanwhile, the first quarter GDP data released on Thursday is even more significant. Although the market expects a year-on-year growth of 1.5%, if it really exceeds expectations, the US dollar index may rise, and a series of dollar-denominated commodities and mainstream currencies will inevitably face downward pressure.
In the short term, silver still has the strength to rebound, but in the long term, it depends on the Fed's actions and the impact of the first quarter economic data. If the expectation of interest rate hikes is rekindled and GDP data is encouraging, then silver and other mainstream currencies will most likely turn from prosperity to decline.
But having said that, although troubled times will make safe-haven assets more valuable, we still hope that the war in the Middle East can be stopped as soon as possible to avoid more casualties of innocent civilians. As for the rest, let the market's buying and selling orders decide its fate.
What we can do is to pay close attention to the interest rate trends and economic data changes of major central banks, and act decisively when the opportunity comes, follow the bull market with open arms, and lead the bull market!
