Gold, Silver Price Rises as Global Uncertainty Fuels Safe-Haven Demand
Silver (XAG) and Gold (XAU) prices continue to finds strong bids during dips, with lows getting higher, which points to further gains.
Gold’s Rally Continues Amid Economic and Trade Concerns
Gold has been on an impressive bullish run, surging from $2,000 in early 2024 to an all-time high of $2,956 on February 24, 2025. A combination of global debt concerns, trade uncertainty, and economic slowdown fears has driven investor demand for safe-haven assets, keeping gold prices elevated. Additionally, a weaker U.S. dollar has provided further support for the metal.
However, in the final week of February, GOLD experienced a sharp bearish reversal, dropping over $130 to reach $2,832. Despite this dip, buyers stepped in at key moving average (MA) support levels, preventing a deeper decline. Gold quickly rebounded back above $2,900, signaling continued bullish sentiment.
Gold Chart Daily – The 20 SMA Has Turned Into Support
The US-Canada trade tensions have further increased demand for gold as a hedge against uncertainty, with XAU/USD finding support near the 20-day SMA. Even strong U.S. JOLTS job data failed to deter traders from accumulating gold, reinforcing its safe-haven appeal.
Despite ongoing volatility, gold remains well-supported, with higher lows indicating continued bullish momentum. However, geopolitical risks could shift sentiment, as U.S. Secretary of State Marco Rubio announced that Ukraine is open to a ceasefire agreement, which may reduce gold’s risk premium.
Silver Outperforms Gold as Uptrend Holds
Silver has also seen a strong rally, climbing over 50% from $22 to $34.85 by October 2024. After a brief correction, XAG/USD found support at the 50-week SMA, resuming its upward trend. Silver prices bounced again last week, with the 20-week SMA acting as a key support level, preventing further declines.
Interestingly, the gold-to-silver ratio dropped 1.2% in March, indicating that silver has shown stronger bullish momentum than gold this month. This suggests that investors are not only seeking safety but also looking for better growth potential in industrial metals like silver.
Outlook for Precious Metals
While safe-haven demand remains strong, geopolitical developments and central bank policies will influence future price action for gold and silver. If global risks persist, both metals could see further upside, but any resolution in trade disputes or geopolitical conflicts could limit gains in the short term.
Gold Live Chart
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