Analyst eyes 'calm before storm' as gold and silver hit record highs

Core Insights - Precious metals, particularly gold and silver, have reached record highs due to geopolitical concerns and inflation worries stemming from the tariff war [1] - Gold's price peaked at $4,549 per ounce and silver at $83.62, prompting higher projections from market analysts [1] Market Trends - Historically, surges in gold and silver prices indicate the beginning of a new market cycle rather than the end of an existing one [2] - The current rally in precious metals is compared to the market behavior observed in mid-2020, where monetary easing led to increased liquidity and a flow of capital into safe-haven assets [3] Investment Behavior - Gold is viewed as a hedge against U.S. dollar devaluation, reacting more swiftly than stocks, while silver has both monetary and industrial value, typically following gold's price movements [4] - Following the March 2020 market crash, gold rose from $1,450 to $2,075 per ounce, and silver increased from $12 to $29 as the Federal Reserve injected liquidity [5] Capital Rotation - The initial rally in precious metals did not immediately trigger a rise in risk assets like Bitcoin, which remained in the $9,000-$12,000 range until after precious metals peaked [6] - This capital rotation signifies a shift from fear-driven positioning to growth-driven investment, reflecting similarities to the market cycle of 2020 [7]