Silver prices have skyrocketed to a 12-year high, driven by escalating global tensions, interest rate cuts, and uncertainty surrounding the U.S. election. This surge has propelled silver-linked ETFs to significant gains, with several seeing year-to-date returns exceeding 40%. The rally in silver comes as investors seek safe-haven assets amidst economic and political turmoil.
Gold prices dropped on Monday due to reduced concerns about a potential broader conflict in the Middle East, with investors turning to riskier assets like stocks. Spot gold fell 2.3% to $2,336.29 per ounce, its biggest intra-day decline in over a year, while U.S. gold futures declined 2.7% to $2,349.70. The easing of tensions prompted investors to reduce their safe-haven positions in gold.
Gold prices fell significantly on Monday, marking a rare decline for the asset. This correction came as investors took profits and portfolio managers repositioned their assets. The decline was also influenced by a slight decrease in geopolitical tensions in the Middle East and a renewed appetite for slightly riskier investments. Despite the pullback, gold remains among the best-performing investments of the year, up approximately 14%.
