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Gold and silver markets surged over the last few days, with gold climbing near record highs near $3,750 per ounce and silver touching $44 in Monday morning trading.

The rally has been driven primarily by growing expectations that the Fed will cut rates further this fall.

Lower interest rates reduce the opportunity cost of holding non-yielding assets, making both gold and silver more attractive to investors.

At the same time, a softer U.S. dollar and declining real yields are providing additional support by lowering the carry costs of precious metals and boosting their appeal to international buyers.

Silver, meanwhile, is getting an extra boost from its strong industrial demand, particularly in electronics, solar, and other technologies.

The historically elevated gold:silver ratio is another factor pointing to silver outperformance going forward.

In response to these dynamics, several major banks, including Deutsche Bank, ANZ, and Citi, have raised their price forecasts for both precious metals, citing bullish scenarios for 2025 and 2026.

Still, risks remain. Investor profit-taking could trigger near-term pullbacks, especially as valuations stretch higher.

For now, though, the momentum remains firmly on the upside, with gold anchored as a store of value and silver increasingly drawing attention as both a monetary and industrial asset.

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