Silver hits historic highs, gold rises moderately – how are geopolitical tensions and interest rate cut expectations driving safe-haven assets?

[Coin World] Recently, interesting signals have emerged in the precious metals market. Silver prices have reached a historical high, and gold is also experiencing a moderate rise, with the driving force behind this quite intriguing.

On one hand, the global geopolitical situation continues to heat up, and in such times, investors generally flock to safe-haven assets—gold and silver are classic safe-haven tools. On the other hand, the market is digesting a deeper expectation: the Federal Reserve may continue to cut interest rates next year.

The low interest rate environment is inherently favorable for precious metals. When the pressure of the US dollar appreciation weakens and the risk-free yield declines, gold and silver priced in dollars become more attractive. The combination of these two factors has triggered the current rotation of safe-haven assets.

For friends who pay attention to macroeconomic trends, this is a good reference signal - an increase in buying of traditional safe-haven assets often reflects the market's level of concern about future uncertainties. Web3 assets, as one of the emerging safe-haven options, also tend to attract attention in such an environment.