Gold and silver have surged to record highs in recent days, drawing intense attention from investors seeking safe-haven assets amid growing economic and geopolitical uncertainty. The spot price of gold climbed to an all-time high of $4,380 per ounce, before correcting slightly to $4,279, marking a daily gain of 0.23%. On a weekly basis, gold rose by over 8%, its strongest weekly performance since 2020. Since the beginning of the year, the precious metal’s value has increased by approximately 65%.
Several key factors have driven the rally in gold prices. Among them are concerns over U.S. credit quality following the disclosure of financial troubles at two regional banks — Zions Bancorporation and Western Alliance — as well as rising trade tensions between the United States and China, including warnings of potential economic “decoupling.” In addition, market expectations for significant interest rate cuts by the Federal Reserve later this year have further boosted demand.
Precious metals, which do not yield interest, typically become more attractive in low-interest-rate environments. The ongoing U.S. government shutdown, which has halted the release of fresh macroeconomic data, has further deepened uncertainty, reinforcing demand for alternative assets. Gold prices have also been supported by strong central bank purchases, inflows into gold-backed ETFs, and escalating political and geopolitical risks worldwide.
Silver Surges to Highest Level Since 1980
Silver has also posted spectacular gains, surpassing its 1980 record to reach a new all-time high of $54.48 per ounce. Although it dipped about 0.9% at the start of the European session on Friday, silver remains up more than 7% for the week and has risen by an impressive 87% since the start of the year.
Like gold, silver’s rally has been fueled by macroeconomic uncertainty and expectations of monetary easing. A major additional driver has been a historic supply deficit in London, which has significantly increased demand. Over 15 million ounces of silver have reportedly been withdrawn from COMEX warehouses in New York, likely for transport to London, where shortages have been most acute. The price differential between the London and New York markets remains high at $1.10 per ounce, down from nearly $3 earlier this month.
Dollar Steady, Fed Policy in Focus
Meanwhile, the U.S. dollar index remains largely unchanged, providing further support for precious metals. Federal Reserve Chair Jerome Powell recently suggested that the Fed may opt for another 0.25 percentage point rate cut later this month, reinforcing market expectations for further monetary policy easing in the United States.
Such a move would likely continue to support both gold and silver, which thrive in environments of low real interest rates, market volatility, and declining investor confidence in traditional financial assets.
Disclaimer
The information contained in this publication is provided for informational purposes only. It does not constitute financial or investment advice and should not be interpreted as a recommendation for any specific individual or situation. Readers are encouraged to seek independent professional advice before making any investment decisions.
Source: CEO.com.pl – “Złoto najdroższe w historii, srebro z największym wzrostem od dekad”
