Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Gold price broke through $3,000 per ounce for the first time on March 14, 2025. After that, due to Trump’s tariff policy disturbing the global trade and economic landscape, the price of the precious metal rose at an accelerating pace.
As of Tuesday (April 22nd), the spot price of gold has exceeded $3,500 per ounce, setting another new historical high.
It is worth noting that from April 16th when the price of gold first broke through $3,300 per ounce to $3,500, it has only taken four trading days.
Meanwhile, the price of Bitcoin broke through $90,000, and the US dollar index is hovering near a three-year low. Axel Merk, president and chief investment officer of Merk Investments, said that this might indicate a deeper structural transformation of the global financial order.
Lee Liang Le, an analyst at Kallanish Index Services, believes that the rapid rise in gold prices this year reveals that market confidence in the United States is weaker than ever before. This rally in gold began in early 2024, when central banks of various countries seeking to diversify their foreign exchange reserves became major buyers. But recently, the inflow of funds into gold-backed exchange-traded funds (ETFs) has also increased.
Analysts generally believe that behind this rally in gold, global central banks, institutional investors and individual investors have joined forces to make gold the most favored safe-haven asset at present, and this phenomenon is unlikely to change easily in the short term.
As the gold price continues to strengthen, institutions’ views on gold have gradually become more optimistic. Goldman Sachs has revised its forecast in a recent report, believing that the gold price will rise to $3,700 per ounce in 2025 and may reach $4,000 per ounce by the middle of next year.
Ven Ram, a macro strategist in Dubai, pointed out this week that in the short term, gold is already in an extremely overbought state and the time for correction is ripe. However, when the global economy is in trouble, the performance of gold is self-evident. Today, the uncertainties the global economy facing are extremely high, and no one is willing to choose to short gold at this time.
