On 14th January, gold shot to a record high, followed by silver, as the geopolitical and economic uncertainties pushed investors towards safe-haven assets, and the anticipation of interest rate cuts by the Federal Reserve lent extra steam.
At 01:38 p.m. ET (1838 GMT), spot gold had increased 0.9% to a record high of $4,628.68 per ounce, having previously reached a record high of $4,641.40.
U.S. gold futures for February delivery were up 0.8 per cent at $4635.70.
“All roads lead to gold and silver,” according to Alex Ebkarian, COO at Allegiance Gold, who cited the fact that “there is a demand among various buyers and that the market is in a structural bull stage.”
The non-yielding gold is generally effective during low interest rates and increased uncertainty.
Iran threatened neighbours hosting U.S. troops to launch attacks against American bases in the event the US intervened against protests in the nation, and Danish ministers and Greenland ministers will meet the Vice President of the United States, JD Vance, when he demanded that the U.S. take control of Greenland again.
In the meantime, statistics indicated that U.S. retail sales increased more than anticipated in November, and PPI was also up to monthly expectations and over annual expectations, as the previous day, with weaker-than-anticipated December core CPI numbers were published on Tuesday. The traders were still expecting two cuts in the interest rate this year.
The issue of Fed independence persisted with the chiefs of central banks the world over rallying on Wednesday in defence of Fed chair Jerome Powell once the Trump administration threatened to criminally indict him on Tuesday.
Spot silver was also increasing by 5.2 per cent at $91.46 per ounce, having reached a record high of $92.23.
“We expect a little volatility, but I would not consider silver any worse than it is at $100. We are forecasting the short-term in the range of 100 to 144,” Ebkarian said that metals should continue their upward trend into the first quarter.
Spot platinum increased 2.4 per cent to $ 2,379.68 per ounce, palladium increased 1.3 per cent to $1,862.96 per ounce.
