Gold and Silver Break Records Again! Dollar Weakens Amid Global Tensions
Gold and silver prices surged to all-time highs on Friday, driven by surging demand for safe-haven assets. Rising geopolitical tensions, particularly in Venezuela and Nigeria, and a weakening US dollar, extended the precious metals' already strong rally heading into year-end. Spot gold rose 1.1% to $4,527 an ounce, just below its record peak of $4,533 set earlier in the day. Meanwhile, silver surged more than 4.2% to $75.64 an ounce.
This surge in investment into precious metals was fueled by concerns about global uncertainty and supply disruptions stemming from US policy on Venezuelan oil exports. Furthermore, US military strikes against militant groups in Nigeria also heightened market tensions, further supporting gold and silver prices. Silver was also driven by demand from the industrial sector, particularly for electronics and clean energy.
The weakening US dollar is adding strength to precious metal prices, as expectations of monetary policy easing by the Federal Reserve increase in 2026. A weaker dollar makes dollar-denominated commodities cheaper for foreign investors, boosting demand for gold and silver. Analysts expect this positive trend to continue into the new year, with the potential for higher prices as market fluctuations occur during the holidays.
Source: Newsmaker.id
