Gold, Silver, and Platinum Hit Record Highs as Year Ends
Gold, silver, and platinum prices surged to all-time highs, continuing a remarkable rally that began at the end of the year, fueled by geopolitical tensions and a weakening US dollar. Spot gold rose 1.2% to peak above $4,530 per ounce. Rising tensions in Venezuela, where the US has blocked oil tankers and increased pressure on the government of Nicolás Maduro, have added to gold's appeal as a safe-haven asset. Furthermore, the US military offensive against the Islamic State group in Nigeria has exacerbated global uncertainty.
Meanwhile, silver for immediate delivery continued to rise, rising 4.6% to surpass $75 per ounce. Silver's rise was driven by speculative flows and lingering supply issues in major trading centers, particularly following the historic short squeeze last October.
The Bloomberg Spot Dollar Index, which measures the strength of the US dollar, fell 0.7% for the week, its biggest drop since June. A weaker dollar tends to support the prices of non-interest-bearing gold and silver. Gold prices have risen about 70% this year, while silver has surged more than 150%, with both on track for their best annual performance since 1979.
This surge has also been driven by large purchases by central banks and inflows into exchange-traded funds (ETFs). Purchases of the largest precious metals ETFs, such as the SPDR Gold Trust, have increased by more than a fifth this year. Lower interest rates by the US Federal Reserve are another driver of precious metal prices, making them increasingly attractive as a store of wealth.
Silver, whose rise has been more spectacular than gold, is driven by strong physical demand and tight supply. Although silver is readily available in New York, traders are still awaiting the outcome of a US Department of Commerce investigation into potential national security risks from imports of critical minerals, which could impact trading in the metal.
Furthermore, platinum has also seen a significant surge. This month alone, it has risen more than 40%, driven by strong physical demand and dwindling global supply, particularly due to disruptions in key producer South Africa. Platinum prices surpassed $2,400 per ounce for the first time since 1987, marking a remarkable year-to-date performance. (asd)
Source: Newsmaker.id
