Why Gold & Silver Rose Sharply in the Past Year
Why Gold & Silver Rose Sharply in the Past Year The past year witnessed an exceptional rally in precious metals, with gold and silver emerging as top-performing asset classes globally . This move was not speculative in nature but driven by multiple structural and macroeconomic factors. Below is a point-wise breakdown of what caused this sharp rise: 1️⃣ Weakening of the US Dollar (DXY Decline) The US Dollar Index (DXY) , which measures the strength of the US Dollar against a basket of major global currencies, witnessed a steady decline during the year. Falling DXY indicates weakening confidence in the US Dollar Gold and silver are priced globally in USD When USD weakens, precious metals become cheaper for non-US buyers, increasing demand Historically, gold and DXY share a strong inverse relationship . 2️⃣ INR Depreciation Despite Global Dollar Weakness While the US Dollar weakened globally, the Indian Rupee depreciated against the USD . This apparent contr...