Gold and Silver Break Records Again

Precious Metals Hit Another Record High – ING

Gold and Silver once again reached fresh all-time highs this morning, surpassing yesterday’s peak. According to ING commodity experts, spot gold climbed to $4,379.93 per ounce while silver advanced to $54.4 per ounce. This remarkable rally further cements precious metals as the ultimate safe-haven assets in today’s high-risk economic environment.

Stunning Year-to-Date Growth

• Gold prices have surged more than 65% since the beginning of the year.
• Silver has soared over 80%, making it one of the best-performing global commodities.
• The rally is largely driven by concerns over credit quality, expectations of continued Federal Reserve easing, and escalating trade tensions between the United States and China.

Credit Concerns and Safe-Haven Demand

• Two regional banks in the United States recently disclosed loan issues linked to alleged fraud. This has heightened fears of weakening borrower credit and pushed investors toward safe-haven assets such as gold and silver.
• At the same time, central bank purchases and strong inflows into precious metals ETFs have provided additional support to the rally.

U.S. Monetary Policy and Market Impact

• Traders are increasingly betting that the Federal Reserve will deliver a jumbo rate cut before year-end.
• Federal Reserve Chair Jerome Powell has also signaled that another quarter-point reduction is likely at this month’s meeting.
• The ongoing United States government shutdown has delayed the release of key economic data, but once resolved, a flood of information could reveal signs of weakness, reinforcing the case for further rate cuts.

Geopolitical Factors and Fed Independence

• Rising geopolitical tensions and concerns about the independence of the Federal Reserve have also fueled the surge in precious metals.
• In an environment of heightened political and economic uncertainty, investors are increasingly turning to gold and silver as reliable safe-haven assets.

Conclusion

Gold and Silver have emerged as the top-performing commodities of the year. With gains of more than 65% and 80% respectively, they reflect the strong global demand for safe-haven assets amid economic and political risks. ING analysts believe that as long as inflationary pressures, credit concerns, and trade tensions persist, the bullish momentum in precious metals is likely to continue.