Precious metals surged to record levels on Thursday, with gold prices approaching US $4,500 an ounce and silver nearing multi-year peaks, as investors sought safe havens amid macro uncertainty, a weak U.S. dollar and ongoing geopolitical risks. Metals traders said that the combination of monetary policy expectations — including possible Federal Reserve rate cuts in early 2026 — and risk aversion driven by global economic indicators helped fuel sustained inflows into bullion markets. Platinum and palladium also posted strong gains, reflecting broad strength across commodity-linked assets, according to market data today. The rally came despite subdued trading volumes typical of Christmas week, with thin liquidity amplifying price moves in precious-metals markets.

Market participants noted that gold’s year-to-date surge — roughly 70 % higher — was partly driven by safe-haven demand as traditional risk assets faced mixed performance, including stock market volatility and geopolitical tensions. Silver’s climb reflected both investor interest and underlying industrial demand, with platinum also catching attention amid supply pressures. The weakened dollar environment — the weakest in roughly two years — made dollar-priced metals more attractive for holders of other currencies.

Analysts said that while strong rallies can attract speculative interest, sharp commodity price moves also signal deeper caution among global investors navigating uncertain economic terrain. Central bank policy expectations, particularly around interest rates and inflation outlooks, have become key drivers of precious-metals positioning. Safe-haven assets typically outperform when growth concerns or financial risks rise, reinforcing metals’ role as portfolio hedges.

Some market watchers caution that corrective moves could occur once liquidity normalises after the holiday period and major markets fully reopen. Seasonally thinner markets can exaggerate price swings, though underlying macro fundamentals remain supportive of elevated precious-metals interest. Traders will be watching key economic data releases early in 2026 for signals on monetary policy direction.

For investors and portfolio managers, the rally underscores the enduring role of gold and silver as strategic hedges — particularly when traditional assets exhibit mixed signals and macro uncertainty persists into the new year.

Source: City News Service.