It’s another record for gold as it races towards $4,100 an ounce, no more sensational news than the precious metal continues to repeatedly update its all-time highs. More surprising is silver, which also flew to multi-year highs close to 52 dollars an ounce. Not least the other precious metals such as platinum and palladium.
Spot prices at new peaks
The spot price of Gold on the New York market reached a maximum of 4,078.90 dollars per ounce, and then settled at 4,068.10 dollars (+1.27%), consolidating a series of eight consecutive gains. Same movement for Silver which trades at 51.61 dollars per ounce (+3.44%) compared to a peak of 51.74 USD/ounce. Other precious metals are also in tension, such as Platinum which trades at 1,640 dollars an ounce (+3%) and Palladium which is worth 1,440 dollars (+4.19%).
Fears of a lack of liquidity on the London market also contributed to supporting the rise of silver, explains Bloomberg, which pushed traders to book cargo flights for silver ingots, an unusual means of transport for this metal and usually reserved for gold, to take advantage of the rich prizes offered in the City. Here, the metal has pushed close to the record of $52.50 from 1980.
As for the futures market, the gold contract for December delivery reached 4,094.32 dollars an ounce (+2.3%), on a high of 4,096 dollars, while the same contract on Silver went up to 49.69 dollars an ounce (+5.14%) on a high of 49.72 USD.
An endless rally
Precious metals have seen a surge this year, posting gains of between 50% and 80%, led by gold, which led the rally thanks to large purchases by central banks and the sharp rise in ETFs. Since the beginning of the year, gold has risen by 54%, palladium has achieved progress of 64% and silver by 69%. However, the most significant increase is that of platinum which has recorded a +83% to date.
Duties, geopolitics, rates: an explosive mix
A series of factors that create uncertainty, such as geopolitical tensions that have never subsided, have obviously contributed to supporting the trend of precious metals. If the Middle East now seems ready for lasting peace, the Ukraine front remains a great factor of uncertainty.
Then there is the tariff issue, which became more acute after Trump’s threats to increase tariffs on China to 100%, delivered via social media on Friday evening, and the annoyed response from Beijing, which on Sunday urged Washington to put an end to the tariff threats, otherwise “it will adopt corresponding resolute measures”.
Finally, there is the rate policy of the Federal Reserve, which after a long period of stasis, is preparing to announce the second cut of 25 basis points in rates on Fed Funds. A supportive element for gold together with the copious purchases by central banks, which have inflated their gold reserves.
