On Friday, both silver and gold prices experienced notable gains. Silver (XAG/USD) rose to $67.18 per troy ounce, marking a 3.03% increase from Thursday's price of $65.21. Despite this daily rise, silver prices have declined by 5.48% since the start of the year. The Gold/Silver ratio, which measures the number of ounces of silver needed to equal the value of one ounce of gold, decreased to 65.37 from 66.58 the previous day, indicating that silver outperformed gold on the day [1].
Gold (XAU/USD) extended its gains for the second consecutive day, reaching session highs around $4,400 after rebounding from one-and-a-half-month lows below $4,250 earlier in the week. This upward movement in gold prices followed a retreat in US Treasury yields, which offset the negative impact of the Federal Reserve's recent hawkish 25 basis point rate hike to the 3.75-4% range. Fed Chairman Kevin Warsh reaffirmed the central bank's commitment to fighting inflation, which increased market expectations for further rate hikes but also restored confidence in the Fed's independence. This environment provided a boost to yieldless assets like gold [2].
Technical analysis for gold suggests that while the metal has pared some losses and eased previous bearish pressure, it remains below the 200-day simple moving average (SMA). The Relative Strength Index (RSI) is just above neutral, indicating stabilizing momentum, but the Moving Average Convergence Divergence (MACD) remains negative, suggesting that upside attempts are still fragile. Resistance is expected near $4,450, with key resistance between $4,510 and the 200-day SMA at $4,541. On the downside, support is seen at $4,335 and in the $4,223-$4,235 range [2].
The articles highlight that both silver and gold are considered safe-haven assets and tend to benefit from lower interest rates and weaker US dollar environments. Industrial demand, particularly from the US, China, and India, also plays a significant role in silver price movements, while central banks are major buyers of gold, especially in times of economic uncertainty [1][2].
CONCLUSION
Both silver and gold prices surged on Friday, driven by a retreat in US Treasury yields and renewed confidence in the Federal Reserve's policy direction. While silver outperformed gold on the day, both metals remain sensitive to macroeconomic factors and central bank actions. The market reaction underscores the ongoing appeal of precious metals as safe-haven assets amid shifting interest rate expectations.