Gold Shines as Safe-Haven Asset, Silver Falters on Industrial Burden

Gold and silver futures are experiencing a rare split session on August 24. Gold is up by 1.10% to $4,731.99, while silver is down by 0.54% to $69.155. This divergence highlights the difference in demand between gold as a safe-haven asset and silver due to its industrial utility.

The split session can be attributed to three macro forces: Fed uncertainty, geopolitical heat, and rising yields. The Federal Reserve's July 28-29 meeting minutes are due this week, with a hawkish undertone that lifts the appeal of gold as a hedge against policy missteps. Ongoing US-Iran tensions are also pushing oil higher and amplifying safe-haven flows into gold.

Silver, on the other hand, is affected by its dual identity and industrial burden. With solar demand facing structural headwinds from thrifting and back-contact cell technology adoption, silver's industrial bid is softening at the margins. However, Citi has reiterated bullish targets of $75 (0-3 months) and $90 (6-12 months) for silver, citing AI, 5G, and EV demand keeping the global silver market in deficit through 2027.