- Gold rose 0.1% to $4,492.51, with an all-time high of $4,525.19.
- Silver gains $72.27 and hits the all-time high of $72.70.
- Low year-end liquidity exaggerates recent price movements.
Gold surpassed the $4,500 an ounce mark for the first time on Wednesday, while silver and platinum also hit record highs, as investors piled into the precious metals amid safe-haven demand and expectations that U.S. interest rates will fall further next year.
Spot gold rose 0.1% to $4,492.51 an ounce by 0359 GMT, after hitting a record high of $4,525.19 earlier in the session. US gold futures for February delivery rose 0.3% to a record high of $4,520.60.
Silver gained 1.2% to $72.27 an ounce, after hitting an all-time high of $72.70 earlier, while platinum jumped 3.3% to $2,351.05 after hitting an all-time high of $2,377.50.
Palladium rose almost 2% to $1,897.11, its highest level in three years.
“Precious metals have become more of a speculative narrative around the idea that, with deglobalization, you need an asset that can act as a neutral intermediary, without sovereign risk, particularly as tensions between the United States and China persist,” said Ilya Spivak, head of global macro at Tastylive.
Tight year-end liquidity exaggerated recent price movements, but the broader theme is likely to endure, with gold targeting $5,000 in the next six to twelve months and silver potentially moving towards $80 as markets respond to key psychological levels, Spivak added.
Gold is up more than 70% this year, its biggest annual gain since 1979, driven by safe-haven demand, expectations of U.S. rate cuts, strong central bank buying, de-dollarization trends and ETF inflows, and traders are pricing in two rate cuts next year.
Silver has risen more than 150% over the same period, outperforming gold due to strong investment demand, its inclusion on the US list of critical minerals and boosted buying.
Gold and silver have “hit the gas this week” to new all-time highs, reflecting their appeal as stores of value amid expectations of lower U.S. rates and persistent global debt, said Tim Waterer, chief market analyst at KCM Trade.
Platinum and palladium, primarily used in automotive catalytic converters to reduce emissions, have soared this year due to mining supply shortages, tariff uncertainty and a rotation of investment demand into gold, with platinum up about 160% and palladium gaining more than 100% so far this year.
“What we’re seeing in platinum and palladium is largely a recovery,” Spivak said, adding that the thin nature of those markets leaves them vulnerable to wild swings, even as they generally follow gold, once liquidity returns.
