What is going on with gold and silver?

The recent volatility in gold and silver prices reflects shifting global geopolitical tensions and a fundamental re-evaluation of the U.S. dollar's dominance. Gold serves as a unique financial asset because its value is decoupled from industrial demand, whereas silver remains tied to economic cycles due to its use in technologies like solar panels. David Kotak of Cumberland Advisors notes that gold’s scarcity and physical durability have made it a primary wealth store for 3,000 years. Currently, central banks in countries like China, Poland, and Turkey are increasingly favoring gold over U.S. Treasury bonds to hedge against potential sanctions, inflation, and U.S. government default. Philip Diehl, former Director of the U.S. Mint, attributes the recent price surge to the Hamas-Israel conflict and broader instability in Ukraine and the South China Sea. While speculative betting drove silver to recent highs, the market corrected following the nomination of a traditional Federal Reserve chair, signaling renewed confidence in the U.S. dollar.