Gold and silver prices surged to historic highs on Monday as investors rushed toward safe-haven assets amid rising geopolitical tensions, economic uncertainty, and growing expectations of U.S. interest-rate cuts.
Spot gold climbed sharply, briefly breaking above the $4,600 per ounce mark for the first time in history. By 0203 GMT, spot gold was trading 1.3% higher at $4,469.49 per ounce, after touching an intraday record of $4,600.33. Meanwhile, U.S. gold futures for February delivery gained 2% to $4,591.10.
According to Kelvin Wong, the rally is being driven primarily by escalating global risks. He noted that geopolitical tensions are fueling strong bullish momentum in both gold and silver markets during the current trading session.
Rate-Cut Expectations Boost Demand
Recent soft U.S. employment data has strengthened market expectations that the Federal Reserve may implement at least two interest-rate cuts this year. Lower interest rates typically support demand for non-yielding assets such as gold and silver, while a weaker U.S. dollar has further amplified the rally.
Silver and Platinum Follow Gold’s Lead
Silver prices mirrored gold’s surge, jumping 3.5% to $82.72 per ounce, after hitting a record high of $83.96 earlier in the session.
Other precious metals also posted strong gains. Spot platinum rose 3.2% to $2,345.40 per ounce, having previously touched a peak of $2,478.50 on December 29.
Market Outlook
Analysts believe that continued global instability, central bank policy shifts, and currency weakness could keep precious metals well-supported in the near term. Investors are closely watching upcoming U.S. economic data and geopolitical developments for further direction.
The latest surge underscores gold and silver’s enduring role as safe-haven assets during periods of heightened uncertainty.
