Editor’s Note
The precious metals market is experiencing significant volatility, with gold and silver prices surging to new highs. This article examines the recent dramatic price movements and what this “high-risk mode” may signal for investors.
Gold and silver prices continue to climb, with the precious metals market entering a “high-risk mode.” Opening the phone this morning, the gold price page gave me a shock—gold surged $70 overnight, breaking through the $5,040 barrier. This means that a gold bar you bought yesterday has inexplicably earned you the equivalent of half an iPhone today. Even more dramatic is silver, which soared 2% directly, breaking above $79, and even the usually less active platinum and palladium followed the upward trend. However, some in social circles are cheering, while others are anxiously cutting losses. Who is making money in this wave of frenzy? Who is left holding the bag?
Specifically, international gold is now quoted at $5,040 per troy ounce, while domestic gold shop prices have already broken through 1,125.5 yuan per gram, nearly 100 yuan more expensive than last week. Silver is even hotter, with domestic prices at 19.13 yuan per gram and international prices at $79 per troy ounce, rising for three consecutive days without stopping. Platinum also rose 1.9% to $2,146.8. A netizen joked:
There are two main reasons for this sudden collective surge. First is the tense U.S.-Iran relations, with Trump threatening to impose tariffs on countries doing business with Iran, and the Middle East powder keg ready to explode at any moment. Gold, as a traditional safe-haven asset, is naturally being snapped up. Second, a Federal Reserve official suddenly hinted that there might be one or two more interest rate cuts, causing the U.S. dollar to weaken instantly, and funds to flow into the gold market. Some analysts have calculated that just these two pieces of news alone could push gold prices up by more than 3% in a single day, not to mention the boost from technical breakout levels—after being range-bound for two months, now breaking through resistance levels in one go, leaving many bulls seeing red.
