International spot gold prices closed at $5,043.10 per ounce on the 9th (local time), up from the previous trading day. Silver prices closed at $79.85 per ounce, also up, with both gold and silver strengthening. Gold prices rose about 1.8% from the previous day's closing price ($4,952.97), breaking through the $5,000 mark again; silver also rose about 3% from the previous day ($77.48).
While both gold and silver prices rose, their trends differed slightly. Gold, as a safe-haven asset, is more susceptible to central bank demand and geopolitical risks; while silver, possessing attributes of both precious and industrial metals, is more sensitive to economic expectations and demand recovery. On that day, both assets appeared to be influenced by a combination of physical demand and macroeconomic factors.
The representative gold-related ETF, SPDR Gold Trust (GLD), closed at $455.46, up about 3% from the previous trading day ($441.88). The silver ETF, iShares Silver Trust (SLV), also closed at $70.19, up 5.2% from the previous day ($66.69). Both ETFs reflect the performance of the spot market, suggesting that investors' preference for safe-haven assets and demand for physical assets continues.
The market believes that recent central bank gold reserve increases, the Federal Reserve's interest rate cuts, and changes in the structure of emerging market foreign exchange reserves are the background factors for price formation. In particular, central banks in emerging markets such as China and India are increasing their gold purchases, and the demand for diversification into physical assets has persisted since the US sanctions against Russia. Policy uncertainties, such as the nomination process for the next Federal Reserve chairman, are also mentioned.
Both spot prices and ETFs rose, showing a consistent trend, but silver exhibited more pronounced volatility in terms of ETF gains. This suggests that, due to silver's relatively strong dependence on industrial demand, it may be directly reacting to economic recovery expectations or policy changes, in addition to supply and demand factors.
Recently, both gold and silver have seen reduced trading volume amid a trend favoring safe-haven assets, but prices have remained strong. This reflects a coexistence of a wait-and-see attitude and a response to increased uncertainty. In particular, the intertwined expectations and concerns related to the Federal Reserve's monetary policy path have made the gold market highly sensitive.
Overall, amid a backdrop of geopolitical tensions and monetary policy uncertainty, signs of continued demand for physical assets are emerging. Gold and silver are both asset classes susceptible to short-term price adjustments due to macroeconomic variables, and their future price movements are likely to continue in response to factors such as interest rate and policy changes, and geopolitical issues.
