#GoldSilverOilSurge
Determinants of the "Surge"
Military Escalation in the Middle East: Joint attacks by the US and Israel against Iran over the weekend resulted in the death of the Supreme Leader, Ayatollah Ali Khamenei.
Hormuz Strait Blockade: Iran retaliated by restricting traffic in the passage through which about 20% of the world's oil flows, causing an immediate shock to energy supply.
Flight to Safe-Haven Assets: Geopolitical uncertainty triggered a flight of capital from stocks and fiat currencies to precious metals, with gold reaching historic "fear" highs in the market.
Trade Tensions and Tariffs: The US Supreme Court's decision on tariffs and the protectionist policies of the Trump administration added an extra layer of volatility and devaluation of the dollar.
Structural Demand for Silver: Besides the geopolitical factor, silver faces physical scarcity due to massive consumption in Artificial Intelligence infrastructure and solar panels.
WSJ +6
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