Gold and Silver prices advanced on bullish momentum

Gold and silver shined again, as their prices posted significantly gains in the last trading sessions, driven by fresh buying interest, geopolitical concerns, US fiscal concerns, increased demand for safe-haven assets, and a weakening US Dollar.

Investors have sought safety on bullion, on growing worries about US President Donald Trump's rapidly shifting stance on trade policies, especially with China and EU, along with tensions in Middle East and the recent escalation of the prolonged Russia-Ukraine war.

The price of the yellow metal rebounded strongly toward the key $3,400/oz resistant level, hovering just below its all-time high of $3,500/oz, hit at April 22 due to bullish momentum.

Gold’s small brother, Silver, has also gained some positive traction lately as its price broke above the key $36/oz resistance level for the first time since February 2012.

On the other hand, investors have increased bets that most of the major central banks might cut their interest rates soon to boost economies and lower the borrowing cost, as ECB did on last Thursday, while the Federal Reserve is planning to cut rates further in the following months.

Bullion, often seen as a safe-haven assets, tends to perform well during economic and political uncertainty and in low-interest-rate environments.

Meanwhile, market participants awaited further developments from ongoing U.S.-China trade talks in London, with discussions encompassing issues ranging from tariffs to rare earth restrictions. (Source: cnbc.com).

In this context, gold and silver prices were holding most of the gains from their recent rally until investors see what if any progress is made between the two global superpowers.