Gold and silver set new highs: why the world is buying up precious metals

Global prices for precious metals, including gold and silver, are soaring to historic highs, driven by investor expectations that the US Federal Reserve will soon cut interest rates, which traditionally boosts demand for safe-haven assets.

Reuters reports this.

Spot gold rose 1.7% to a record high of $4,179.48 per troy ounce as of Tuesday morning. Meanwhile, gold futures for December delivery rose 1.3% to $4,187.50, marking all-time highs for the market.

Since the beginning of the year, gold has already risen by 57%, and on the eve it crossed the key psychological threshold of $4,100 for the first time. Against this background, major investment banks have updated their forecasts. In particular, Bank of America and Societe Generale predict that the cost of gold could reach $5,000 by 2026. Standard Chartered has also revised its expectations – for 2026 the forecast is $4,488 per ounce.

The price of other precious metals is also rising. Silver rose 2.2% to $53.60 per ounce. Platinum added 1.9% to $1,677, and palladium rose 2.1% to $1,505.75 per ounce.

Traders consider it almost certain that the US Federal Reserve will start cutting interest rates this fall. Investors are betting on a 99% and 94% chance of such a move in October and December, respectively. The cut is expected to be 25 basis points each time.

This sentiment is fueling interest in precious metals, which are traditionally considered a safe haven for capital during periods of financial instability.

Recall, on October 7, gold reached a new historical high, approaching the $4,000 mark per ounce . The rise in the price of the precious metal is fueled by uncertainty in global markets, a prolonged shutdown in the US, and political instability in France.

Also follow “Pryamim” on Facebook , Twitter , Telegram , and Instagram.