Gold and silver hit new highs again! Should we chase now?

The recent surge in gold and silver has directly heated up the market.

Spot gold broke through $5311.

Silver is even more explosive, already surpassing $115.

This sudden surge looks unexpected, but it’s actually a concentrated outbreak of market sentiment.

The core reason is simple: everyone’s trust in the dollar system is weakening.

Ultimately, the foundation of the dollar is being eroded layer by layer.

The Federal Reserve’s independence has been significantly impacted.

Powell has even been subjected to criminal investigations.

The authority of the central bank has been shaken.

Market skepticism about the dollar’s pricing anchor naturally arises.

Looking at the US fiscal situation, the deficit has long been out of control.

Under the expectation of “big and beautiful,” the fiscal deficit is expected to increase by another $2.8 trillion over the next decade.

This is a typical debt addiction.

Essentially, it’s a depletion of the dollar’s global credibility.

Who still dares to confidently hold dollar assets?

External factors are adding fuel to the fire.

Geopolitical flashpoints are emerging one after another: Greenland, Iran, Venezuela.

Uncertainty is everywhere.

As risk aversion rises,

Gold and silver, as hard currencies, naturally become the first choice for funds.

And the actions of central banks are the clearest indicator.

The pace of global central bank gold purchases simply cannot stop.

The Polish central bank plans to increase holdings by 150 tons of gold.

Our central bank has been adding to its reserves for 13 consecutive months.

Institutions and official entities are quietly changing their positions.

Voting with real gold and silver, this signal couldn’t be clearer.

This time, silver’s rise is even more fierce than gold’s,

And it’s not a coincidence.

On one hand, it’s the recovery of the gold-silver ratio.

Previously, the ratio deviated from a reasonable range,

Now it’s just catching up to normal.

More importantly, silver’s industrial attributes are fully utilized.

Photovoltaics, electric vehicles, AI data centers—

all are big consumers of silver.

Actual demand has surged significantly.

Driven by both supply-demand fundamentals and ratio correction, the increase is naturally more intense.

But to be honest, chasing the high now requires caution.

Current risks include:

Will the new Federal Reserve chair signal “defending central bank independence”?

If policies tighten,

and if inflation rebounds, forcing the Fed to shift,

gold and silver are likely to undergo a deep correction.

Additionally, the huge profits accumulated during this rally could be cashed out at any time.

The pressure of realizing gains can easily cause market volatility.

At present,

the three core reasons supporting the bullish trend of gold and silver remain unchanged:

The continuous weakening of dollar credibility,

The persistent global central bank gold-buying wave,

And the high level of geopolitical uncertainty.

But the short-term market has already priced in many expectations.

Don’t get overly excited and blindly enter the market.

While hard currencies are stable, buying at high points can still be painful.