International Markets — Gold prices surged to a record high, while silver also rallied to an all-time peak, as investors intensified bets on future US interest rate cuts and flocked to safe-haven assets amid lingering global economic and geopolitical uncertainty.
In early trading, spot gold climbed sharply, extending its strong run this year as expectations grew that the US Federal Reserve may ease monetary policy sooner than previously anticipated. Lower interest rates typically support gold prices by reducing the opportunity cost of holding non-yielding assets, prompting renewed investor interest in bullion.
Silver mirrored gold’s momentum, joining the rally to hit historic highs, supported not only by safe-haven demand but also by its industrial use, particularly in renewable energy and electronics. Market analysts noted that silver’s dual role as an investment and industrial metal has amplified its gains during periods of economic transition.
The latest surge comes as financial markets increasingly factor in multiple US rate cuts in the coming months, following mixed economic data and signs of slowing inflation. A softer US dollar has further boosted precious metals, making them more attractive to overseas buyers.
Gold has already posted strong year-to-date gains, reinforcing its status as a hedge against inflation, currency fluctuations, and geopolitical risk. Silver, meanwhile, has outperformed many commodities, driven by tight supply conditions and robust investor inflows.
Analysts caution, however, that while sentiment remains bullish, short-term volatility cannot be ruled out, particularly as traders lock in profits and await clearer signals from the Federal Reserve. Thin trading conditions and shifts in macroeconomic data could trigger sharp price movements.
Despite these risks, market participants believe that the broader outlook for precious metals remains positive, as uncertainty over global growth, interest rates, and geopolitical developments continues to underpin demand for safe-haven assets.
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