Analysts said the rally reflects a confluence of macroeconomic and geopolitical factors that continue to reshape investor behaviour. They believed that a weaker US dollar as well as escalating geo-political tensions are being reflected in the continuous surge in the prices.
After a bumper rally over the past few weeks, the precious metals market witnessed a sharp correction on Friday, as both Gold and Silver prices tumbled on the Multi Commodity Exchange (MCX).
West Asia Strategist Waiel Awwad has warned that tensions between Pakistan and Afghanistan are likely to intensify in the coming days, citing the expulsion of Afghan nationals, the influence of the China-Pakistan Economic Corridor, and broader geopolitical factors in the region.
John Reade, Senior Market Strategist at the World Gold Council, gold has consistently performed well in risk-off environments, climbing from USD 1,000 during the financial crisis to USD 2,000 amid the pandemic, and now surpassing USD 3,000 as global uncertainty intensifies.
As per S&P Global, over the past decade, efforts to transition to renewable energy have faced hurdles from macroeconomic and geopolitical factors, slowing the pace of change since 2022.
This resilience is attributed to the deceleration of growth in the US and China. The anticipated recovery in the tech cycle is expected to play a pivotal role, particularly benefiting countries like Korea, Malaysia, Taiwan, and Singapore.