Silver Breaks Record, Gold Prices Rally?
Silver set a new record and gold also rose due to two major factors: worsening geopolitical tensions and expectations that the Fed will cut interest rates further next year. When global conditions are "hot," investors typically flock to safe-haven assets like precious metals.
Silver rose 1.76% to $68.249 per ounce. This rise was driven by speculative flows and still-tight supply following the historic short squeeze in October. Silver futures trading volume in Shanghai also surged earlier this month, approaching levels seen during the "crunch" several months ago.
Spot gold rose to near $4,365 per ounce, just about $20 shy of its all-time high. Gold has risen for two consecutive weeks, as markets bet the Fed will cut interest rates twice by 2026—although last week's economic data hasn't provided a clear picture. Meanwhile, US President Donald Trump is also pushing for more aggressive interest rate cuts. Lower interest rates typically benefit both gold and silver, as neither bears interest.
Geopolitical factors are further fueling the "safe play" sentiment. The US is tightening its blockade of Venezuelan oil to pressure the government of President Nicolás Maduro, while Ukraine is for the first time attacking oil tankers from Russia's "shadow fleet" in the Mediterranean Sea. This combination has led the market to assess that global risks are not abating, thus maintaining demand for precious metals.
This year has been a "big year" for precious metals: gold and silver are both heading for their strongest annual gains since 1979. Silver has more than doubled, while gold has surged by about two-thirds, supported by central bank buying and inflows into bullion-based ETFs. Gold ETFs have recorded inflows for five consecutive weeks, and World Gold Council data shows total holdings have risen every month this year except May. At 8:27 a.m. in Singapore, silver rose 0.5% to $67.46, spot gold rose 0.5% to $4,363.21 (near its record of $4,381 in October), platinum rose after surging 2.5% on Friday, palladium rose 1.5%, and the Bloomberg Dollar Spot Index remained relatively stable. (asd)
Source: Newsmaker.id
