Another new high for gold

 This week the USD has weakened, leading to the gold price spiking to 3263 USD per ounce, which is a new all-time high. Gold is often traded in USD on international markets. When the dollar weakens against other currencies, will it be cheaper for investors from other countries to buy gold. This has led to an increase in demand for gold and is pushing the price higher. In addition, when the USD weakens, it can also be a sign of economic uncertainty or inflation. Therefore, gold can be seen as a “safe haven” for investors in these periods. When investors lose confidence in the value of the USD, they may turn to gold to preserve their purchasing power. This is a result of the tariffs introduced by the Donald Trump administration.  

 

This week, he has pulled back slightly on the tariffs, which has led to some stability in the stock market. However, many economists in the US believe it has gone too far and think the country may be heading for a recession. This is causing significant uncertainty in the American economy, and with a weakened dollar, investors are now looking elsewhere to put their money.  

 

However, silver has been more volatile in this period as well. The silver prices dropped on the Trumps liberation day and has gone further down after Trump published the tariffs. However, the 90-days tariff break seems to have good effects also on the silver prices. It´s volatility in this period can have a connection with the uncertainty of investing in silver now. Since silver has a higher industrial use than gold people might be uncertain of how the post-break tariffs will affect silver prices since the tariffs have a big impact on industry. 

 

The gold to silver ratio has now a value of over 100, which is seen as a high value. This can indicate that silver is underpriced due to gold. And it might be a good time to buy silver. Nevertheless, there is still a lot of uncertainty in the market and if bringing back the tariffs will have the same effects on the silver prices as before, it might be good to sell silver before the end of the break and start shortening the price after the break. 

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