Gold and Silver Prices Decline for Second Consecutive Week: Implications for Investors
Gold and silver prices are facing significant pressure, heading for weekly losses for the second consecutive time. This trend is attributed to the strengthening of the dollar and a declining risk appetite among investors, fueled by concerns regarding the performance of technology stocks and artificial intelligence.
The price of gold saw a slight increase of 0.4% in spot trading, reaching $4,790.80 per ounce. However, it is on track for a weekly decline of 1.4%. Meanwhile, U.S. gold futures for April delivery fell by 1.7% to $4,806.50 per ounce.
In the case of silver, it remained stable in spot trading at $71.32 per ounce after a sharp drop of 19.1% in the previous session. This results in a weekly loss of approximately 16%, marking the steepest decline since 2011, as market risk appetite weakens.
Ilia Spivak, head of global macroeconomics at "Tasty Live," noted that "the risk appetite has clearly diminished, with falling stock markets and a sharp decline in Bitcoin value, making gold relatively more stable while silver faces significant pressure."
In this context, JP Morgan forecasts that silver will continue to be subject to sharp corrections due to its relatively high valuations, with a short-term price expectation between $75 and $80 per ounce, and a gradual recovery towards $90 next year.
Regarding currencies, the dollar remains near its highest level in two weeks, heading for its best weekly performance since November, which increases the cost of dollar-denominated assets for holders of other currencies. Investors anticipate, according to the "FedWatch" tool, at least two rate cuts of 25 basis points by 2026, with the first cut expected in June. Such developments generally support the performance of non-yielding assets like gold.
In other metals, platinum dropped by 4.7% in spot trading, reaching $1,892.74 per ounce after hitting a record high of $2,918.80 on January 26. Meanwhile, palladium rose by 0.8% to $1,628.95 per ounce, with continued weekly losses expected for both metals.
