Gold Approaches $5,000/oz, Silver Near $100 in Historic Rally

Precious metals surged on Friday, with gold (GC=F) nearing $5,000 per ounce and silver (SI=F) hitting $100 amid a robust rally. Bullion is poised for its strongest weekly gain since 2020, up 13% year-to-date, driven by central bank purchases and private investor interest. A weaker US dollar, anticipated Federal Reserve easing, fiscal deficits, and reduced demand for government debt have fueled the rally. Geopolitical tensions, including Denmark's pension fund exiting US Treasurys and Northern European investors reassessing US assets, have further supported precious metals. Saxo Bank's Ole Sloth Hansen highlighted the erosion of US fiscal discipline as a key factor in gold's sustained demand. Silver futures have outperformed, rising 29% year-to-date, with industrial use contributing to its gains. JPMorgan analysts caution that silver prices have already exceeded forecasts, making it challenging to predict a peak. Bloomberg's Mike McGlone draws parallels to past rapid price movements, warning of potential sharp retracements if silver lives up to its "devil's metal" reputation. Ines Ferre reports for Yahoo Finance.