Gold Eases After Record Rally; Global Markets Remain Mixed
The price of silver surged to its highest level in decades on Thursday as investors rushed to safe-haven assets amid rising geopolitical and economic uncertainty.
According to Bloomberg, silver topped $50 an ounce, reaching levels unseen since 1980. The surge followed gold’s record-breaking rally, which saw the precious metal briefly cross $4,000 an ounce on Wednesday before easing.
John Plassard, head of investment strategy at Cite Gestion Private Bank, described the sharp rise as a “catch-up effect.” He noted growing concerns over the US economy, possible Federal Reserve rate cuts, and France’s mounting debt.
Plassard added that talk of a global silver shortage has given the metal an additional lift. “Silver is not only a safe-haven investment but also essential for industries such as solar energy,” he explained.
Both gold and silver are traditionally viewed as secure investments during periods of instability.
Meanwhile, the US dollar strengthened against major currencies, rebounding after a prolonged decline earlier this year. Analysts at Convera said the greenback’s recovery is “driven by deteriorating conditions abroad and recalibrated expectations at home,” citing political unrest in France and “dovish shifts” by Japan’s central bank.
On Wall Street, US stocks pulled back from recent record highs amid a lack of new economic data caused by the ongoing US government shutdown. Despite the political stalemate, markets have remained relatively steady.
“Even the most bullish markets take a break sometimes,” said Steve Sosnick of Interactive Brokers.
Investors are now focusing on corporate earnings. PepsiCo shares jumped 4.2% after reporting stronger-than-expected third-quarter sales. Delta Air Lines rose over 4% on solid profits and a bullish travel outlook.
However, Boeing fell 4.1% following a Reuters report suggesting Turkish Airlines may switch to Airbus over concerns about engine supply terms.
In Europe, the Paris stock market slipped as French President Emmanuel Macron sought a new prime minister after Sebastien Lecornu’s resignation, deepening France’s political crisis.
