BY COMFORT OGBONNA
The U.S. dollar weakened to a four-month low, adding fresh momentum to an already powerful rally across precious metals by making dollar-priced commodities more attractive to overseas buyers. The softer greenback has reinforced bullish sentiment in gold, silver and platinum markets, which have been climbing amid mounting geopolitical tensions and strong global demand.
Analysts say gold still has room to push higher this year, with some projecting prices could approach the $6,000 level if current conditions persist. Ongoing geopolitical uncertainty, heavy central bank buying, and solid consumer demand are all supporting the metal’s advance. Market participants note that gold’s appeal as a store of value tends to strengthen during periods of political instability and currency weakness.
Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said further gains cannot be ruled out, especially in stress scenarios where confidence in currencies or financial assets continues to erode. However, he cautioned that sharp interim corrections are possible, as rapid price surges often trigger bouts of profit-taking before the broader uptrend resumes.
From a technical perspective, spot gold has broken through key resistance at $5,070 an ounce, opening the door to further gains. Analysts expect prices to move into a near-term range of roughly $5,154 to $5,206 an ounce, with the potential to climb higher over time. Longer-term projections suggest gold could eventually rise toward the $5,400 level if bullish momentum remains intact.
Silver has also surged to fresh record levels, touching $110.06 an ounce before easing slightly to trade around $109.36, still up more than 6% on the day. The metal crossed the $100 mark for the first time on Friday, extending a remarkable rally that follows a record 147% gain last year. Strong retail investor inflows, momentum-driven buying, and prolonged tightness in physical supply have all contributed to silver’s explosive performance.
Platinum and palladium joined the rally, reflecting broad strength across the precious metals complex. Spot platinum jumped 4.4% to $2,887.76 an ounce after hitting a record high of $2,897.35 earlier in the session. Spot palladium climbed 3.9% to $2,089.11, having touched a more than three-year high of $2,095.19.
With the dollar under pressure and uncertainty dominating global markets, analysts believe precious metals are likely to remain well supported. While short-term pullbacks may occur, many investors see them as buying opportunities in a market increasingly driven by safe-haven demand and concerns over the stability of traditional financial assets.
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