M4Markets: Safe-haven demand boosts gold and silver prices

On March 25th, against the backdrop of unmet expectations in the global geopolitical situation, safe-haven assets once again demonstrated their core appeal. As the previously widely anticipated easing of tensions failed to materialize as expected, funds began to flow back into precious metals seeking protection. Although global economic stability still faces challenges, this upward volatility triggered by the return of risk aversion reflects the current market sentiment’s extreme sensitivity to uncertainty.

Looking at specific market data, both gold and silver recorded significant recovery gains during U.S. stock trading hours. Data shows that April gold futures prices have risen to $4,428.20, while May silver has reached $70.46. However, during the rally, multiple factors continue to exert downward pressure, especially the strong performance of the U.S. dollar index and the 10-year U.S. Treasury yield remaining at a high of 4.4%. These factors, combined with oil prices around $91.50 per barrel, make it difficult for inflation expectations to cool in the short term, thereby constraining the upside potential for gold and silver.

As we move into the latter half of this week, technical battles will become even more critical. The primary task for gold bulls is to break through the psychological level of $4,500.00 and attempt to stabilize above the strong resistance zone at $4,750.00; meanwhile, silver bulls aim to push prices up to $80.00. For investors, the key focus should be on the resilience of the crucial support level at $4,100.00. As long as the macro environment’s premium effect persists, the long-term allocation value of gold and silver will continue to attract defensive capital.