Precious Metals Soar as Dollar Weakens and Oil Prices Decline

Silver rose by 12% and gold by 6% in their best weekly performance since January, driven by a weakening dollar and lower oil prices. The dollar's decline makes precious metals less expensive for foreign currency holders, boosting demand.

The spot price of gold gained 6% on the week, trading near $4,325 per ounce, while silver surged 12% over the same period, quoted at $64 per ounce.

Oil prices also softened as US President Donald Trump said war could end soon, increasing expectations of the Strait of Hormuz's reopening. Lower oil prices ease inflationary concerns, making non-interest-yielding assets like gold and silver more attractive to investors.

Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, noted that gold traded with a strong positive bias this week after breaking out of its prolonged consolidation phase in July.