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.