Gold Falters Near $4,516 While Silver Surges 1.6%
The US dollar index softened on Thursday as spot gold hovered near $4,516.60 per ounce, down 0.12% from the previous day's close. Spot silver, however, bucked the trend and rose by 1.6%, reaching an intraday peak of $69.11.
The divergence between gold and silver can be attributed to the varying levels of support they receive from investors. Gold is generally seen as a safe-haven asset, but its price is also influenced by interest rates and inflation expectations. Silver, on the other hand, has strong near-term momentum due to its use in industrial applications.
The Strait of Hormuz remains a significant geopolitical risk factor, with uncertainty over when tankers can freely leave the Persian Gulf. This risk premium supports safe-haven buying for gold and keeps silver's momentum intact.