Gold Hits Record High, What Happens Next?
Gold prices hit a new record above $4,500 an ounce on Tuesday (December 23rd), driven by rising geopolitical tensions, particularly in Venezuela, and expectations that the Federal Reserve will cut interest rates further next year. Gold continues to show its appeal as a safe haven amid concerns about macroeconomic risks, while silver and platinum prices also hit record highs.
Silver prices surged to $72.70 an ounce, having previously broken through $70, driven by speculative inflows and ongoing supply disruptions following a historic short squeeze in October. Silver is now experiencing a more spectacular rally than gold, with physical demand rising and supply selling in key markets, such as London.
Platinum also rose 4% to over $2,300 an ounce, fueled by tight supply and high borrowing costs. This increase puts platinum on track for its biggest annual gain since Bloomberg data began being compiled in 1987, with a 160% increase this year.
Meanwhile, gold continues to rally at high levels after its previous decline in October. After a correction from a peak of $4,381, gold has rebounded, demonstrating strong momentum to carry these gains into next year. Several banks, including Goldman Sachs, predict gold prices will continue to rise in 2026, with a base case reaching $4,900 per ounce.
This rise in precious metal prices is supported by significant ETF buying. SPDR Gold Trust, the largest precious metals ETF, has seen a rise of more than a fifth this year, adding support to gold prices. Optimistic market sentiment, driven by political tensions and expectations of looser monetary policy in the US, is further strengthening the appeal of gold, silver, and platinum.
With sharp price movements, the precious metals market is predicted to remain dependent on Fed policy and global geopolitical tensions. Investors seeking protection from risk will continue to monitor these dynamics to capitalize on emerging opportunities in the gold and other precious metals markets. (asd)
Source: Newsmaker.id
