Gold surged to an unprecedented high above $4,500 an ounce Wednesday, driven by geopolitical tensions and expectations of further U.S. interest rate cuts. Silver and platinum also hit historic peaks.
Key drivers:
- Rising U.S.-Venezuela friction boosted safe-haven demand.
- Markets are betting on additional Fed rate cuts in 2025.
- Central banks and ETFs are buying at record levels.
Stunning annual gains: Gold has skyrocketed over 70% this year, while silver has exploded by 150%. Both are heading for their best annual performance since 1979. Platinum has jumped nearly 160% in 2024, its biggest yearly gain on record.
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Analysts cite sustained physical demand from central banks and investors, combined with geopolitical tensions and a weakening dollar, as core drivers. While technical indicators suggest the market is overbought, many believe the fundamental momentum could carry into 2026.
Silver broke above $70 for the first time Tuesday, reaching $72.70. Unlike past rallies, this surge is supported by tangible demand and supply dislocations. Platinum also soared, breaking $2,300 for the first time in decades amid tight supplies.
While technical indicators suggest the metals are overbought, underlying conviction appears strong, leaving analysts cautious but watching for any policy shifts or geopolitical developments that could cool the historic rally.
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