Gold Unstoppable, Silver & Platinum Also Break Records
Gold prices finally broke through $4,900 per ounce on Thursday, marking a new milestone amid a classic combination of factors: still-volatile geopolitics, a weakening US dollar, and a market growing confidence that a Fed rate cut is imminent. Spot gold briefly touched a record $4,928.29/oz at 2:51 PM ET, before the market entered a consolidation phase.
In the futures market, US gold futures for February delivery also locked in gains, closing up 1.6% at $4,913.4/oz. One factor contributing to the rally: the dollar index (DXY) fell 0.4%, making gold cheaper for non-American buyers and boosting demand across currencies.
According to Peter Grant (Zaner Metals), this rally is not just a fleeting reaction. He believes a series of factors—from geopolitics, a weak dollar, to expectations of Fed easing—are part of a broader de-dollarization narrative that continues to maintain robust gold demand.
From a geopolitical perspective, the market's focus is on Greenland. President Donald Trump claims the US has secured "total and permanent" access through an agreement with NATO, while NATO has emphasized the need for increased Arctic security commitments to counter Russia and China. However, the picture is not entirely clear: details of the agreement remain scarce, and Denmark has emphasized that Greenland's sovereignty is not a bargaining chip.
Meanwhile, the latest PCE data indicates that US consumer spending remains strong—spending rose in October and November—furthering the narrative that the economy remains "resilient." Nevertheless, the market still believes the Fed has room to soften, with expectations of two 25-bps cuts in the second half of the year. This trend is usually a "tailwind" for gold because the metal does not yield.
Grant added that if there is a correction, the market tends to view it as a buying opportunity, not a signal of a trend break. He even stated that the $5,000/oz area appears close, and after that, the Fibonacci projection target of $5,187.79/oz is considered reasonable.
The euphoria has also spread to other precious metals. Spot silver surged to a record $96.58/oz, with Tradu analyst Nikos Tzabouras suggesting silver has an even more compelling story: it's not just a safe haven, but also supported by its industrial character—plus a boost from the weakening dollar. Platinum surged 4.6% to a record $2,601.03, while palladium rose 3.3% to $1,900.59.
Source: Newsmaker.id
