Gold and Silver Dancing Together as Geopolitical Turmoil Drives Inflation Uncertainty

[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( It has been a wild day for [silver]( as prices broke long-term resistance at $30 an ounce and just kept going. [Silver ended the day above $31 an ounce, its highest level in 11 years.]( At the same time, prices were up 11% for the week, marking its best performance since early August 2020. [Gold]( also had an impressive day as its consolidation period ended, with prices closing the week above $2,400 an ounce. There are growing expectations that it's only a matter of time before gold prices test new all-time highs at $2,500 an ounce. [Silver is benefiting as a monetary metal, with gold trading near all-time highs and as an industrial asset, with copper ending the week at an all-time high above $5 per pound.]( Whether you are a gold investor or a silver stacker, the fact that these two metals are finally moving in traditional fashion is very encouraging. However, despite the excitement in silver, gold remains the asset to watch for many analysts. The reality is that when the chips are down, investors want gold as their safe-haven asset. Just look at how billionaires are starting to pay attention to the precious metal. In updated regulatory filings, Michael Burry’s Scion Asset Management disclosed that it is betting heavily on precious metals. [During the first quarter, the hedge fund bought 444,000 units of the Sprott Physical Gold Trust (PHYS), valued at more than $10 million.]( Burry isn’t alone in his gold bet. David Einhorn’s Greenlight Capital still holds a significant amount of gold bought in the fourth quarter of last year. The hedge fund did take some profits in the first quarter, but it still holds a $74 million stake in the world’s biggest gold-backed exchange-traded fund, SPRD Gold Shares (NYSE: GLD). It’s not surprising that major investors are starting to pay attention to gold. We have highlighted the growing value in the marketplace as central bank demand provides solid support. At the same time, retail investors in Asia, led by Chinese consumers, continue to consume gold at an unprecedented pace. This week, [the World Gold Council noted that 131 tonnes of gold were withdrawn from the Shanghai Gold Exchange in April.]( Meanwhile, [the French bank Natixis said that Western investors could be missing the boat in gold as they continue to focus on U.S. monetary policy and its impact on opportunity costs.]( In a report published this week, Bernard Dahdah, the bank's precious metals analyst, said that Asia is now becoming a price setter in the global gold market. This has been a significant evolution in the last decade and is a big factor behind gold’s record run last month. “We would argue that the Chinese gold market is now capable of not just being a market of last resort that purchases opportunistically at price dips but is now also capable of imposing broader price discovery on the entire market. We believe this was the case during this April’s price rally,” Dahdah said. While gold has seen an impressive run so far this year, analysts expect this is just the start of the bull market. This week, [Michele Schneider, Director of Trading Education and Research at MarketGauge, said that she could easily see gold prices at $2,600 an ounce as geopolitical uncertainty fuels inflation.]( The convergence of renewed interest from billionaires, technical bullish patterns, evolving global dynamics, and cautious market sentiment highlights gold’s enduring appeal. With silver joining the party, who knows when this ride will end? 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