Gold prices reached new heights on Wednesday, climbing past the $4,500-per-ounce mark for the first time. Investors are increasingly turning to precious metals amid safe-haven demand and expectations of further US interest rate cuts next year.
Spot gold rose 0.1% to $4,492.51 per ounce by early trading, after briefly touching a record high of $4,525.19. US gold futures for February delivery also hit a record, climbing 0.3% to $4,520.60.
Other precious metals also gained momentum. Silver increased 1.2% to $72.27 per ounce after reaching a historic peak of $72.70. Platinum surged 3.3% to $2,351.05, following a high of $2,377.50. Palladium rose nearly 2% to $1,897.11, its highest level in three years.
Analysts say thin year-end market liquidity exaggerated recent price moves. However, the overall trend points to continued strength for gold and other metals. Some experts project gold could reach $5,000 per ounce in the next six to twelve months, while silver may approach $80.
This year, gold has surged over 70%, marking its biggest annual gain since 1979. Safe-haven demand, expectations of US rate cuts, robust central bank buying, de-dollarization trends, and ETF inflows have all contributed to the rise. Traders currently price in two potential rate cuts next year.
Silver has outpaced gold, jumping more than 150% this year. Strong investment demand, its inclusion on the U.S. critical minerals list, and momentum buying have supported silver’s gains.
Platinum and palladium have also seen sharp increases, primarily due to tight mine supply, tariff uncertainties, and a rotation from gold investments. Platinum is up roughly 160% and palladium more than 100% year-to-date. Both metals are widely used in automotive catalytic converters to reduce emissions.
Experts note that platinum and palladium markets are thin and vulnerable to sharp swings. Nevertheless, they generally track gold prices once liquidity returns, reflecting the ongoing appeal of precious metals as stores of value amid global economic uncertainty.
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The recent surge highlights investor confidence in gold and other metals, as markets prepare for potential US monetary easing and navigate ongoing global financial risks.
