Amid global economic volatility, the gold-to-silver ratio emerges as an important indicator for assessing risk and reward in financial markets. This ratio is calculated by dividing the price of an ounce of gold by the price of an ounce of silver and is used to determine the relative value between the two metals.
Silver Technical Analysis: Divergent Signals
Silver has recently experienced interesting technical movements. The price has crossed above the 50-day moving average, indicating potential upward momentum. However, the 200-day moving average remains above the 50-day moving average, reflecting bearish divergence. This divergence suggests that the market may face resistance in the short term.
ETF Performance
The gold-to-silver ratio is a valuable tool for investors to assess risk and reward in financial markets. Given current technical analysis, investors are advised to monitor momentum indicators and moving averages to determine appropriate entry and exit points. They should also pay attention to support and resistance levels in major indices such as the S&P 500 to make informed investment decisions. Gold Price Outlook: Where Is the Yellow Metal Headed?
Gold prices have experienced sharp fluctuations in recent days, after hitting a new record high earlier this week. On Wednesday, the yellow metal experienced a sharp correction, falling 2.5% in spot prices to below $3,300 per ounce. This movement was also influenced by rising gains in equity markets, as well as a stronger US dollar following the easing of global concerns.
Gold Outlook Amid Ongoing Conflicts
Amid these developments, gold continues to be a key hedge in times of crisis. Growing uncertainties surrounding the global economy, trade wars, and geopolitical disputes reinforce the yellow metal’s position as a safer asset. Based on JPMorgan’s forecast, gold could surpass $4,000 per ounce by next year, amid these complex global conditions.
JP Morgan forecasts: Gold will soon exceed $4,000
According to JPMorgan’s latest forecasts, the bank is strengthening its expectations for a rise in the price of gold. The bank expects the price of gold to reach $3,675 per ounce by the end of 2025. By the second quarter of 2026, the yellow metal could exceed $4,000 per ounce, reaching $4,250 by the end of the same year.
The bank bases these forecasts on several factors, most notably concerns about stagflation in the United States. In this context, gold is considered the ultimate safe haven for investors, providing protection from the effects of recession and currency weakness. The US Federal Reserve’s policy of rapidly cutting interest rates also reinforces the positive outlook for gold.
Gold as a Safe Haven Amid Global Economic Risks
Gold continues to be the preferred choice for investors seeking protection during times of economic uncertainty. Amid fears of a US recession, gold is strengthening its position as a key hedge.
The increased interest in buying gold by central banks around the world indicates a continuation of this upward trend. These banks are expected to continue purchasing large quantities of gold, contributing to its price support. These operations underscore the continued demand for the yellow metal, which remains a focus of investor attention during times of economic stress.
Fears of Foreign Selling of US Treasuries and Their Impact on Gold
Another factor supporting gold’s rise is the increasing risk of foreign selling of US Treasuries. If this occurs, it could cause turmoil in financial markets, making gold a safe alternative under these conditions.
Fears of stagflation in the United States are also contributing to the strengthening of demand for gold, as the yellow metal is expected to see strong demand from investors who are moving away from assets that could be negatively affected by a recession.
Gold prices rise amid doubts about the easing of tensions between the United States and China.
Gold prices rose sharply in Asian trading on Thursday, benefiting from ongoing doubts about a de-escalation in the trade war between the United States and China. The escalation in the conflict between Russia and Ukraine increased demand for safe havens, supporting the yellow metal’s rise. Although gold fell after US President Donald Trump raised the possibility of reducing trade tariffs on China, the impact of this statement remained limited. While the comments caused a temporary decline, the uncertainty surrounding them, along with other comments from less optimistic government officials, meant that gold’s decline did not last long. Safe-haven sentiment amid concerns over trade and economic tensions
Financial markets remain cautious as investors monitor developments in the US-China trade war. Amid these concerns, gold maintains its position as a key hedge. Spot gold prices rose 1.3% to $3,331.34 per ounce, while gold futures rose 1.4% to $3,341.25 per ounce at 01:37 EST.
JP Morgan, in its latest report, predicted that gold prices would continue to rise, indicating that gold could reach $4,000 per ounce by next year.
This forecast reflects the continued strong demand for the precious metal as a safe haven amid ongoing uncertainty surrounding the global economy. Gold Continues to Shine Amid US Economic Uncertainty
Gold remained close to its record high this week, reaching $3,500 an ounce. This rise was supported by continued demand for gold bullion from investors seeking a safe haven amid global economic challenges. Concerns about the US economy have grown, particularly with the ongoing trade war between Washington and Beijing, further strengthening the trend toward gold as a hedge.
In a statement this week, Trump indicated that he may eventually ease the high tariffs on China.
However, he added that this decision is contingent on China agreeing to negotiate.
Fears about the impact of tariffs on global markets
Continued conflicting statements from US officials are increasing market uncertainty. US Treasury Secretary Scott Besant has confirmed that trade negotiations with China could be difficult, and that the United States may need to further reduce tariffs before entering into talks with Beijing. These statements have raised concerns among traders, prompting them to seek safer assets such as gold.
At the same time, recent reports suggesting possible exemptions for automakers have not been able to provide significant support to the dollar or Treasury bonds.
Other Metals Affected by the Dollar’s Decline
Other precious metal prices were mixed this week.
While platinum futures rose 0.1% to $979.75 per ounce, silver prices fell 0.4% to $33.39 per ounce. Meanwhile, copper fell 0.1% on the London Metal Exchange to $9,371.35 per tonne. US copper futures settled at $4.8348 per pound.
Russia-Ukraine Tensions Boost Gold Demand
Tensions between Russia and Ukraine continue to drive gold demand higher. Moscow launched an intense attack on Kyiv, using drones and missiles. This escalation came as ceasefire talks faltered, especially after Trump attacked Ukrainian President Volodymyr Zelenskyy over his position on Russia’s occupation of Crimea.
Gold as a Hedge amid Continued Uncertainty
Overall, gold prices are likely to continue rising amid political and economic uncertainty.
Increasing pressure from the trade dispute between the United States and China, as well as the military escalation between Russia and Ukraine, will continue to push investors toward the yellow metal as a safer option.
Gold Markets Continue to Rise
The continued strength of the bullish momentum in the gold market reflects several key factors affecting price stability.
Global economic concerns continue to support demand for gold.
