Gold prices stabilize after a drop, and silver expands its losses

Gold stabilized after dropping to below $ 4,000 an ounce in the previous session, while Silver expanded its losses, as investors took profits after a rally that had pushed prices to their highest levels since 1980. The precious metal traded nearly $ 3.980 per gram on Friday, after losing 1.6% in the previous session. Technical indicators show that gold has remained in the overbought zone for most of the past month, urging some investors to consolidate their profits to a wave of rise that lasted four consecutive days, which brought prices to a record high of $ 4,059,31 per ounce on Wednesday. The profit in silver after a historic rising silver also dropped after touching $ 51,235 per ounce on Thursday, the highest level in more than four decades. The metal has been higher since the beginning of the year, which is easily better than Gold’s profits. This leap falls within the framework of growing interest in precious metals, powered by the fear of excessive strength in stock markets, financial pressure in the United States, and threats to the independence of the Federal Reserve. This decline coincided with a decline in US stocks on Thursday. Although gold is usually regarded as a safe haven during the market unrest, it can decrease in tandem with risks when investors liquidate their positions to cover losses elsewhere. However, the precious metal is still on its way to achieving weekly profits for the eighth week. “Gold, silver, cryptocurrencies and most S&P 500 stocks have all moved in one direction during US trade, although in different grades, as the technical picture shows signs of diminishing momentum,” Chris Weston, head of research at Pepperstone Group Ltd, wrote in a note. He added, “The strong momentum that brought prices to new peaks day after the day began to decline, as some traders were eager to reduce their exposure to extensive positions and stabilize their performance.” Precious metals as a hedging against the erosion of the value of currencies that have precious metals have gained momentum in the so -called ‘decrease in the value of currencies’, as investors move to secure assets such as ‘Bitcoin’, gold and silver, away from major currencies such as the dollar. Concerns about the erosion of the value of securities due to inflation and unsustainable fiscal deficits increase the attractiveness of these assets. The pot of Gold Price reached $ 3,987.04 an ounce in Singapore at 07:47 o’clock, while the Bloomberg Dollar Index changed little after rising in the highest level in the highest level in the previous session. Silver fell 0.2% after achieving as much as 4.8% on Thursday, while Platinum and Palladium both progressed. The worldwide silver market and rising borrowing costs often cost silver with gold, as it has a strong reverse correlation with the US dollar and US interest rates. But Silver also has industrial uses in solar panels and wind turbines, which together represent more than half of the global demand for the metal. The demand is expected to exceed the supply for the fifth year in a row in 2025. The London Silver Market became tighter in an almost unprecedented degree, leading to a sharp rise in the borrowing cost. During this year, the fear that the United States may impose customs on silver, a rabbit to send the metal to America, which has exhausted shares in London and reduces the amounts available for loans.