Gold Rally: Results and Hard-to-Stop Trends

Stagnation Energy in Financial Markets

Recently, investors worldwide have been feeling uncertainty, leading to stagnation energy. Notably, China-US trade tensions and credit issues related to fraud allegations against regional banks in the US are among the significant factors disrupting the markets.

Trade Tension and Economic Uncertainties

The financial issues in question have resulted in weakened debt credits and increased demand for safe havens, prompting investors to adopt a cautious stance. The lack of clear visibility in macroeconomic data strengthens expectations that tensions will continue.

Stock Markets and Volatility

While there is generally a positive atmosphere in the stock markets, it has been observed that Trump's statements have a direct impact on the markets. Following the bankruptcy of Silicon Valley Bank in 2023, the credit risk of regional banks has caused oscillations in the markets. However, current macroeconomic indicators do not signal stagnation.

Rising Trend in the Gold Market

Gold prices are challenging historical highs, reaching $4,380 per ounce. This rise is supported by increasing China-US trade tensions and expectations of further interest rate cuts from the US Federal Reserve. Additionally, due to the Dhanteras festival in India, investors have shifted towards buying coins and bullion instead of jewelry in response to rising prices.

Developments in Silver and Other Metals

Silver has also shown a remarkable rise, expected to exceed $54 per ounce with an increase of over 80% by 2025. However, copper prices have experienced a slight decline due to trade tensions and the impact of the US government shutdown.

Future Expectations and Interest Rate Cuts

While uncertainties persist in global markets, US interest rates are currently trading below 3.50%. China shows signs of slowing economic momentum, and the decision to keep credit interest rates stable reflects a cautious approach to monetary policy.

Oil Prices and Economic Impacts

Global oil prices are declining due to concerns over excess supply. Brent crude oil prices have fallen by 0.4% to $61.05 per barrel. These developments, combined with the uncertainty of macroeconomic data in North America, complicate investors' decision-making processes.