Gold and silver prices surge amid âshort squeezeâ risk âĄ
Gold is up over 1% today, driven by several key factors boosting sentiment in the metals market. The U.S. dollar and Treasury yields are declining, while statements from Federal Reserve officials suggest that the Fed still expects rate cuts this year, along with a gradual decline in inflation. A significant factor adding to market uncertainty is Trumpâs recent actions, which impact global trade, geopolitics, and the economy. As a result, demand for safe-haven assets, including gold, is rising.
However, the current rally goes beyond macroeconomic and geopolitical factors. Fears of a 10% tariff on Europe have triggered a surge in demand for physical gold in New York, draining gold reserves in London.
āđāļĢāļīāđāļĄāđāļāļĢāļāļāļąāļāļāļĩāļ§āļąāļāļāļĩāđ āļŦāļĢāļ·āļ āļĨāļāļāđāļāđāļāļąāļāļāļĩāļāļāļĨāļāļāđāļāļāđāļĢāđāļāļ§āļēāļĄāđāļŠāļĩāđāļĒāļ
āđāļāļīāļāļāļąāļāļāļĩ āļĨāļāļāļāļąāļāļāļĩāđāļāđāļĄāđ āļāļēāļ§āļāđāđāļŦāļĨāļāđāļāļāļĄāļ·āļāļāļ·āļ āļāļēāļ§āļāđāđāļŦāļĨāļāđāļāļāļĄāļ·āļāļāļ·āļKey market dynamics:
- Rising wait times for physical gold deliveries
- Strong demand has led to the liquidation of massive short positions on commodity exchanges
- Highest physical gold demand since the pandemic
- Gold reserves on COMEX have jumped from ~17.5M to 32M ounces in just a few weeks
- The recent $200â$300 per ounce price surge is unrelated to monetary policy factors
Gold remains well above the EMA50 on the daily chart, and once again, weâve seen an upward breakout from the consolidation phase that persisted throughout Q4 2024.
Source: xStation5
Silver Prices Also Surge
Silver is soaring today, gaining 1.25% to $32.50 per ounce. Prices have just broken out of a key resistance zone above $32. A sustained breakout above this level could push silver prices toward $33.50. On the downside, in case of a correction, traders should watch the $32 and $31.40 support zones.
Source: xStation5
