On Wednesday, gold prices rose above $4,000 per ounce for the first time, reflecting a significant increase driven by global economic and political uncertainties and expectations for U. S. interest rate cuts. Silver prices also reached a record high, following gold’s trend as investors sought safe-haven assets. By 12:17 PM ET, spot gold was up 1.8% at $4,053.13 per ounce, while U. S. gold futures for December delivery increased to $4,075.00. Silver prices rose 3.4% to $49.42 per ounce, previously hitting an all-time high of $49.57.
Analysts noted that gold’s rise indicates a favorable environment for safe-haven assets, with concerns over traditional safe-havens contributing to this trend. Year-to-date, gold has increased by 52%, while silver has risen more than 66% amid tightening in the market and seasonal demand from India. Factors such as high lease rates and significant inflows into exchange-traded products (ETPs) have supported silver’s price increase.
With expectations of continued U. S. interest rate cuts, geopolitical conflicts, and significant inflows into gold funds, analysts do not foresee a significant decline in gold prices, projecting it could reach $5,000 per ounce within the year. The U. S. government shutdown, which has delayed key economic data releases, has further fueled demand for gold and silver. Inflows into gold ETFs totaled $64 billion for the year, with record inflows in September. Technical indicators suggest gold is currently overbought. Other precious metals like platinum and palladium also experienced price gains.
with information from Reuters