Analyst: Crisis of Confidence in the Dollar Drives Gold and Silver to Record Highs

Deep News01-26

Capital.com market analyst Daniela Hathorn writes that waning confidence in the U.S. dollar is driving up the prices of precious metals. Hathorn stated that overnight record highs for gold and silver provide "further evidence of a deepening crisis of confidence in the U.S. dollar and the broader monetary order," suggesting these new peaks indicate that the "global system is under stress."

She added that investors, concerned about geopolitical tensions and potential interference by a Trump administration with the Federal Reserve's independence, are "seeking refuge in assets not subject to political discretion." These factors, she noted, will continue to position precious metals as more than just a risk-hedging tool. In New York, gold futures surged 2.2% to $5,090.30 per ounce, while silver prices jumped 7.9% to $109.34 per ounce.

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