Breaking the gold ceiling to unlock the potential of money

robot
Abstract generation in progress

Gold constitutes the foundation of precious metals dynamics. As long as its ceiling is not reached, silver has a truly unlimited growth potential. This is precisely what many speculators seem to ignore when taking short positions on silver. On paper, following the overall trend offers steady and controlled returns. But some prefer to take enormous risks to achieve short-term gains.

Gold remains the essential anchor of precious metals

At the heart of the noble metals markets, gold acts as a stabilizer. Its price trajectory sets the overall ceiling for the sector. Silver, as an alternative metal, sees its upward potential directly limited by gold’s movement. As long as gold has not reached its maximum appreciation thresholds, silver’s prospects will remain open. This is a reality that short sellers seem to systematically overlook in their market analyses.

Global geopolitics rekindles gold demand

The current geopolitical environment does not favor a decline in precious metals at all. International tensions are mounting, world leaders are adopting unpredictable stances—particularly with initiatives from certain controversial political figures. In this context of increasing instability, gold can only continue its ascent. Safe-haven investors will inevitably flock to this traditional refuge, sustainably supporting prices.

Betting on the decline of silver accumulates weaknesses

This year, gold should easily reach $6,000 per ounce. Silver will experience a temporary peak around $120, but this is by no means the final ceiling. Going short at the top hoping to benefit from a simple pullback? It’s a risky and thankless game that sacrifices long-term prospects for crumbs of immediate profit. Speculators choosing this approach accept to play with fire for modest and precarious gains.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)