Gold and silver hit record highs as investors flock to safe-haven assets amid rising geopolitical tensions and a weakening U.S. dollar.
Gold and silver prices surged to unprecedented levels on Friday as investors sought safe-haven assets amidst rising geopolitical uncertainties and a weakening U.S. dollar. The strong year-end rally in precious metals underscores growing market concerns over global instability.
Gold Hits New Records
Spot gold climbed 0.6% to $4,506.76 per ounce by 02:55 GMT, reaching an intraday record of $4,530.60/oz earlier in the session. Meanwhile, U.S. Gold Futures for February delivery rose 0.7% to $4,537.55. Analysts predict gold could gain nearly 3% this week as investors continue flocking to assets that offer security against global economic uncertainty.
Silver Follows Suit
Silver tracked gold’s momentum, jumping over 4% to hit a new record of $75.14 per ounce. Weekly gains for silver are projected at more than 7%, boosted not only by its status as a safe-haven asset but also by strong industrial demand in electronics and clean-energy technologies.
Geopolitical Risks Drive Safe-Haven Demand
Geopolitical developments played a key role in the surge. Heightened U.S. pressure on Venezuela’s oil exports raised concerns about potential supply disruptions and broader regional instability. Adding to market tension, former President Donald Trump announced U.S. military strikes against militant targets in Nigeria, signaling potential escalations in multiple regions.
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These developments have increased demand for precious metals, as investors look for stability amid uncertainty. Limited availability and strong investment inflows during the holiday period further amplified price volatility.
Weak U.S. Dollar Supports Rally
The rally was also driven by a weaker U.S. dollar, which has declined against major global currencies. Market expectations that the Federal Reserve may ease monetary policy in 2026, as inflation cools and economic growth slows, have added to dollar weakness. A softer dollar generally makes dollar-denominated commodities like gold and silver more attractive to international investors.
Additionally, lower U.S. Treasury yields have reinforced the appeal of non-interest-bearing assets such as gold, prompting a portfolio shift toward value-retaining commodities. Analysts expect gold and silver to maintain strong performance into the new year, despite potential price swings from thin liquidity during the holiday season.
Outlook for Investors
Experts recommend monitoring geopolitical developments and currency movements closely, as these factors will continue to influence precious metal prices. Both gold and silver remain key options for investors seeking protection from economic uncertainty and market volatility.
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