Gold on Track for Weekly Gain Above 7% as Silver Climbs

Gold and silver recorded a new historic high in the international market on Friday. The weak dollar in comparison to other major world currencies, along with a rise in political tensions and apprehensions about the autonomy of the US Central Bank (Federal Reserve), led to a sharp rise in precious metals prices.

The price of gold rose above $4,960 an ounce during early trading today as it gained more than 7 percent during the week. Silver also touched a fresh high of close to $97 an ounce. Gold gained 0.5 percent and touched $4,959.39 an ounce, while silver gained 0.7 percent and touched $96.91 an ounce.

According to analysts, the US President's increasing pressure on the Federal Reserve, tensions in regions like Venezuela, Iran, and Greenland, and global uncertainty have increased demand for safe-haven investments. Investors are turning to hard assets like gold and silver instead of bonds and currencies, a trend known as debasement trading. This is an investment strategy in which investors invest in limited-supply assets like gold, silver, bitcoin, and other commodities to protect against the devaluation (price decline) of fiat currencies (such as the dollar and euro) and government bonds.

The rally also impacted India. On Thursday, gold prices on the MCX jumped nearly 4% to close at ₹1,56,540 per 10 grams, reaching a record high of ₹1,57,086. Silver rose 0.87% to close at ₹3,26,500 per kg, while its lifetime high was ₹3,35,521 per kg.

Gold and silver had also seen a sharp single-day decline in recent days. This was due to the US President's softening stance on tariffs on Greenland and European countries, which increased risk-taking in the market and reduced demand for safe investments. However, now strong US economic data, a weak dollar, and ongoing geopolitical tensions have once again pushed gold and silver to higher levels.