Gold, Silver Soar as Dollar Weakens

(MENAFN) Gold prices extended their historic climb on Wednesday, pushing past the $5,200 mark, as investors awaited a monetary policy announcement from the US Federal Reserve.

At the same time, the US dollar slid to an almost four-year trough amid persistent geopolitical anxieties.

In the spot market, gold increased roughly 1.6% on the day, reaching $5,264.20 per ounce by 0700 GMT, after earlier hitting a fresh record peak of $5,271.45 during the session. Overall, bullion has risen by around 9% over the course of the week.

Over the last year, gold has jumped approximately 90.5%, and it is up about 17% since the beginning of the year. This strong performance has been underpinned by escalating trade disputes, geopolitical uncertainty, and interest rate reductions by leading central banks.
Silver followed a similar upward path, climbing 2.4% to $114.8 per ounce. Over the past 12 months, silver values have surged by more than 277.6%.

According to market observers, the rally has been driven by the softer US dollar and ongoing geopolitical strains. US President Donald Trump, meanwhile, refrained on Tuesday from stating that the currency’s decline had gone too far.

“I think it’s great,” Trump said of the weaker dollar. “I mean the value of the dollar, look at the business we’re doing. No, dollar is doing great. You know it’s very interesting, if you look at China or Japan, I used to fight like hell with them because they always wanted to devalue their yen ... you know that, the yen and yuan, and they’d always want to devalue it. They devalue, devalue, devalue. And I said, ‘not fair.’ They devalue, because it’s hard to compete when they devalue.”

Meanwhile, the US dollar index dropped by more than 2.7% over the week. On Tuesday, the greenback also slipped to its weakest level since February 2022.

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