Gold and silver have broken key technical levels as the dollar hits two-year lows, with deeper concerns about U.S. fiscal sustainability driving the precious metals rally. Gold cleared resistance from its April record high, while silver posted its strongest gain since October with a 5.4% surge past $33.68.
The moves reflect structural shifts as investors diversify from U.S. assets amid mounting debt concerns – the U.S. must refinance $9.2 trillion in 2025 while running a $1.9 trillion deficit. This “fiscal debt black hole” scenario supports gold’s path potentially toward $4,000. Silver is showing relative strength versus gold, potentially signaling further outperformance ahead. Copper remains caught in tariff uncertainty, with Trump’s threatened 25% import duties creating volatile trading and wide price spreads between exchanges as the market awaits the Commerce Department’s decision.