Gold and Silver Dominate Commodity Rally as Dollar Weakens

The worldwide commodities industry, including gold and silver, is making notable progress, with investors positively responding to the exclusive vulnerability in the U.S. dollar. Specifically, the U.S. dollar has plunged by 11% over the past twelve months, irrespective of President Trump’s recent assurances. As per the data from Kobeissi Letter, gold has climbed by 3%while silver has seen a 9% growth in one session. This wider equity market spike signals wider optimism among asset holders.

Gold and Silver Spike 3% and 9% over Year Amid Dollar’s 11% Plunge

The extraordinary performance of gold and silver in the equity market parallels the declining value of the U.S. dollar. Hence, despite Trump’s statement that USD is “doing great,” the currency shows a 11% drop over the year. On the other hand, gold futures spiked to the $5,275.59 mark.

This signifies the inclusion of more than $154.99 (3.03%). At the same time, the spot gold has also surged to $5,243.45. The respective figure indicates that the investor optimism has pushed it forward to earn over $61.67 (almost 1.19%). Additionally, silver jumped to the staggering $115.230, highlighting a $9.273 (8.75%) increase in the meantime.

Precious Metal’s Growth Denotes Investors’ Interest in Hard Assets

Apart from that, the energy markets have also extended gains while the pressure is rising on the U.S. dollar. Thus, West Texas Intermediate recorded a 0.64% growth, adding $0.40 to reach $62.79. Additionally, Brent and Natural gas touched $66.93 and $3,800 after 0.51% and 0.61% jumps.

According to Kobeissi Letter, the dollar slump is driving a market shift, with investors moving toward the equity market. Particularly, gold and silver’s remarkable jumps, along with energy market growth, highlight worldwide demand for these prominent assets. Overall, whether the respective trend sustains remains to be seen in line with the wider economic conditions.