The dollar is weakening. In simple terms, that means one U.S. dollar buys less, especially when compared to another currency, such as the euro. One year ago, on Feb. 2, 2025, the dollar and the euro were very close to parity. One dollar would buy 0.98 euros. Today, a dollar buys 0.85 euros. It buys 0.73 British pounds and 0.78 Swiss francs. Conversely, one USD buys 155 Japanese yen. The dollar has generally been declining since January 2025, when it closed above 109, and has recently fallen to a four-yea ...

Core Insights - The precious metals market is experiencing a significant rally driven by geopolitical uncertainty, expectations of U.S. interest rate cuts, a weaker U.S. dollar, and strong industrial demand, particularly for silver and platinum [2][3][6] Group 1: Market Performance - Gold futures have increased approximately 1.6%, trading above the $4,500 level, while silver has surged over 3% due to tight physical markets and robust industrial demand [1] - Platinum prices are also supported by ongoing supply constraints, trading near the upper end of its recent range [1] Group 2: Demand and Supply Dynamics - Silver is facing its fifth consecutive year of supply deficits, with demand consistently outpacing supply, driven by industrial applications such as solar panels, electronics, and AI data centers [5] - Platinum production has dropped to multi-year lows, contributing to tight market conditions, with automotive use remaining a primary demand driver alongside industrial and jewelry demand [5] Group 3: Economic Influences - Ongoing global instability, including conflicts and trade frictions, is prompting investors to seek traditional safe-haven assets like gold and silver [3] - The decline in the U.S. dollar's value is making dollar-denominated commodities cheaper for holders of other currencies, thus increasing international demand [4] - Central banks are diversifying their reserves away from the U.S. dollar and have been purchasing gold at record rates, contributing to substantial investment inflows into gold and silver ETFs [4]