1. Silver hits a 14-year high, driven by economic uncertainties. 2. Jerome Powell's cautious rate cut signals affect market enthusiasm. 3. Gold prices rose over 40% in 2025, reflecting strong central bank demand. 4. Retail investors favor gold and silver as safe-haven assets. 5. Heavy volatility expected for precious metals due to Fed actions.
Central banks' increased demand for gold and silver provides support for S&P 500 due to potential investment shifts into stock-heavy sectors.
Current economic climate and Fed's approach directly affect investor sentiment towards equities, and rising precious metals may lead to reallocation of investments, enhancing S&P 500's performance.
The upcoming decisions from the Fed can lead to immediate reactions in stock prices influenced by metals market dynamics.