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As the Dollar Weakens, Precious Metals Sparkle — Time to Invest?

Dollar Weakens, Precious Metals Sparkle

Gold and silver are benefiting from de-dollarization. Bullish predictions: $4,000 for gold, $70 for silver. A rush to safe havens is on the horizon.

De-dollarization is accelerating, challenging the greenback’s dominance. Gold is now targeting $4,000, with a major technical threshold at $3,600. Silver could cross $70 as early as October, according to several precious metal analysts. Investors are turning to these assets in the face of the loss of confidence in the US dollar.

A brutal challenge to the dollar’s hegemony

The status of the US dollar as a global monetary benchmark is now highly contested. Accused by many countries of serving as an economic weapon, the US dollar is undergoing a gradual but massive disengagement from its use by economic powers seeking to reduce their exposure to the dollar.

This de-dollarization is no longer a marginal phenomenon. It is now manifesting itself through a reallocation of reserves toward assets deemed more stable and less sensitive to political decisions from Washington. In this context, two assets in particular are attracting massive investment flows.

Gold Targets $4,000: A Credible Target According to Analysts

The recent cut in the Fed’s key interest rate, combined with massive purchases by central banks, has revived investor interest in gold. The safe-haven asset is experiencing a new bullish cycle fueled by geopolitical and monetary instability.

According to a gold market expert, a return to $3,600 could serve as a technical springboard to reach the psychological threshold of $4,000. He believes this level would be conducive to a “market cleanup,” allowing weak positions to be cleared and creating a solid foundation for a sustained rally.

It’s better not to waste this pullback. A test at $3,600 would be an opportunity to eliminate late buyers and reset the market before a new upward leg.

Silver ready to surge towards $70 as early as October

Silver, often considered the poor relation of monetary metals, is also beginning to attract attention. The historically high gold/silver ratio could drop sharply to 70, or even 58, if the current trend continues. In this configuration, and with gold at $3,900, the silver price would automatically have a potential of $67, or even $70 if gold reaches the $4,000 threshold.

This momentum is also supported by growing industrial demand linked to the development of artificial intelligence and green technologies, sectors that are major consumers of silver.

Silver now has every chance of reaching a historic high as early as October. Its current undervaluation relative to gold is no longer sustainable.

A Strategic Restructuring of Global Reserves

The current development reflects a major trend: the desire of governments and investors to free themselves from the financial system dominated by the US dollar. Gold and silver are emerging as effective instruments for rebuilding reserves outside Western influence, while ensuring a degree of stability in the face of growing volatility in fiat currencies.

As international financial institutions ponder the next steps in US monetary policy, markets are reaffirming their preference for tangible assets, particularly in a context where confidence in fiat currencies is eroding.

Outlook: Towards a New Monetary Paradigm?

If these bullish forecasts are confirmed, the current cycle could mark a historic break with the Bretton Woods system and its extensions. The accumulation of gold by central banks and the rise of silver in the technology industry signal a profound reshaping of the pillars of global financial security.

Far from being a mere passing fad, this shift toward tangible assets could redraw the balance of economic and monetary power in the years to come.

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