Gold prices surged to a historic high on Monday, crossing the $4,600-per-ounce mark for the first time, driven by mounting geopolitical tensions, economic uncertainty, and rising expectations of interest rate cuts by the US Federal Reserve. Silver prices also jumped to an all-time high, reflecting strong investor demand for safe-haven assets.
In early Asian trade, spot gold rose 1.5 per cent to $4,478.79 an ounce as of 0127 GMT. During the session, bullion touched a record high of $4,600.33 per ounce before easing slightly. Analysts attributed the rally to a combination of global risk aversion and growing bets that the US central bank may begin easing monetary policy in the coming months.
Market participants said uncertainty surrounding global growth, persistent inflation risks, and ongoing geopolitical flashpoints have reinforced gold’s appeal as a store of value. Expectations of lower US interest rates have further supported the metal, as reduced yields tend to increase the attractiveness of non-interest-bearing assets such as gold.
Silver mirrored gold’s momentum, climbing to a fresh all-time high amid increased investment demand and its dual role as both a precious and industrial metal. The rally in silver has been underpinned by expectations of strong industrial usage alongside its safe-haven appeal.
For Indian investors, the global surge in precious metal prices could translate into higher domestic rates, particularly at a time when gold demand traditionally remains sensitive to price movements. Elevated prices may impact jewellery consumption in the short term, while continuing to attract investment interest through bars, coins, and exchange-traded instruments.
Market experts caution that while the broader trend remains bullish, volatility is likely to persist as investors closely track global economic data, central bank signals, and geopolitical developments.
With gold and silver both trading at record levels, the precious metals market is once again at the centre of global financial attention, reflecting deepening uncertainty in the international economic and political landscape.
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