Precious metals markets recorded unprecedented historical gains during trading today, with gold continuing its strong upward trajectory, surpassing the $5,100 per ounce mark for the first time, driven by a broad wave of demand for safe-haven assets. This surge coincided with an exceptional performance for silver, which also soared to near its all-time highs, registering a significant jump of over 8% in spot trading.
Gold and silver record highs
In trading details, spot gold rose 1.7% to $5,095.75 an ounce, after hitting a record high of $5,110.50 in the previous session. Meanwhile , U.S. gold futures for February delivery saw a slight decline of 0.15%, settling at $5,130.90 an ounce, reflecting normal market volatility following sharp gains.
Silver, for its part, stole the spotlight with a remarkable performance, rising to $112.24 an ounce in spot trading, after reaching a peak of $117.69 yesterday. This surge reinforces the gains of the white metal, which has seen an astonishing rise of nearly 60% since the beginning of this year, outperforming many other investment assets.
Economic and geopolitical context
This dramatic surge in metal prices cannot be separated from the tense global economic and political landscape. Historically, investors have turned to gold and silver as hedges against inflation and currency fluctuations during times of crisis. Geopolitical uncertainty a key role in driving these prices, as portfolio managers prefer to move away from riskier assets and toward more stable, defensive ones.
In this context, Tim Waterer, senior market analyst, pointed out that the economic policies associated with former US President Donald Trump's approach, and the threat of new tariffs, have benefited precious metals. Waterer said, "The threats of higher tariffs on trading partners like Canada and South Korea create an environment of trade instability, which is enough to keep gold a preferred safe-haven option.".
The impact of the dollar and government interventions
Another factor contributing to this rise is the weakness of the US dollar. The joint intervention by US and Japanese officials to support the yen led to a decline in the dollar index, which is traditionally considered a "gift" to gold prices; a weaker dollar makes the yellow metal less expensive for holders of other currencies, thus stimulating global demand.
Moreover, the greenback is facing additional pressure stemming from fears of a potential US government shutdown and volatile policies that are increasing the uncertainty of the financial landscape in the world's largest economy.
Performance of other metals
In contrast to gold and silver, platinum group metals experienced a decline and price correction. Platinum fell 2.5% in spot trading to $2,658.19 per ounce after reaching a previous record high of $2,918.80. Palladium also declined, dropping 1.3% to $1,956.31. This highlights the divergence in investor sentiment between monetary metals (gold and silver) and pure industrial metals under current market conditions.
