Silver Hits $42/oz — 45% YTD Gains —
Gold prices have climbed to an unprecedented $2,877 per ounce, driven by a perfect storm of market conditions.
Heightened concerns over US-China trade tensions have intensified safe-haven demand, while dealers are rushing to move metal to the US before potential tariff implementation.
This urgency has created significant market tightness, evidenced by London lease rates soaring to 4.7% from near zero. The strain on the physical gold market is visible in the weeks-long queues at the Bank of England for bullion withdrawals and increasing flows into New York’s Comex depositories.
Adding to the momentum, the US dollar’s decline following a softer jobs report has made gold more attractive to international buyers. Market experts suggest that if the tightness persists, central banks might need to intervene to maintain market stability by injecting liquidity into the system.
