Gold and silver prices saw significant jumps in Monday’s Asian trading, driven by escalating geopolitical concerns, including tensions between the U.S. and Venezuela, which fueled demand for safe haven assets. Spot gold surged 1.4% to a record high of $4,403.60 per ounce, surpassing its October peak. Similarly, February gold futures rose over 1% to $4,442.55 per ounce.
Silver also saw a strong increase of 3%, reaching a record price of $69.4545 per ounce, while silver futures climbed to $69.515 per ounce. This rise in silver was accompanied by platinum, which surged by 2% to more than $2,000 per ounce for the first time since 2008. Palladium also rose by 5% to $1,799.20 per ounce, its highest level in three years.
The increases in precious metals over the past few weeks have been driven by concerns about slowing global economic growth, which has boosted demand for safe assets. Additionally, expectations of U.S. interest rate cuts in 2026 have driven investors to focus on precious metals as safe investment tools.
OCBC analysts noted that gold’s gains are supported by structural and cyclical factors, such as expectations of rate cuts from the Federal Reserve, continued demand from central banks, and ongoing geopolitical uncertainty. Even as some short term factors fade, gold remains a strategic portfolio allocation, reinforcing its position as a long term asset.
Despite the significant gains in silver, some experts have warned that silver could face a pullback if industrial demand weakens or economic growth concerns escalate. On the other hand, reports of rising tensions between the U.S. and Venezuela have boosted demand for safe haven assets, which has positively impacted precious metal prices.
With expectations of increasing demand for silver and platinum in industrial sectors, such as electrical components, the markets have moved upward. The anticipated supply shortages in the coming year have also supported prices. These factors have contributed to metals like silver and platinum outperforming gold this year.
The gains were not limited to precious metals, as copper also saw a notable rise, driven by expectations of improved demand in the coming year. The increase in copper demand is linked to enhanced economic incentives in China, as well as rising demand for electrical components in AI data centers. These factors have pushed copper prices to record levels, reflecting strong momentum in tangible asset markets.
In conclusion, the precious metals markets remain on alert amid ongoing geopolitical tensions and the impact of Federal Reserve monetary policy on markets. As concerns about slowing economic growth grow, the demand for safe haven precious metals continues to rise, making them a key attraction for investors seeking to protect their capital in these turbulent times.
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