Fed Optimism Pushed Gold Prices to a Record High

Historic Rise in Gold and Silver Markets

In light of new economic data from the U.S., gold prices have surpassed the $4,400 level for the first time, buoyed by Federal Reserve (Fed) optimism. With an increase in safe-haven demand, gold reached a historic peak, trading at $4,400.29 in the spot market. As of 11:30 AM, prices rose to $4,412, reflecting a 1.6% increase. U.S. gold futures found buyers at $4,445, showing a 1.3% rise.

Silver Also Setting Records

This rise in gold has also impacted silver. Spot silver prices climbed to $69.44, setting a new record. However, prices later fell to $68.77, yet still gained over 2% in the last 24 hours. The price of silver per ounce reached $2,946.

The Future of Spot Gold and Silver

Spot gold has shown a 67% increase this year, successfully surpassing both $3,000 and $4,000. It is on track to achieve the largest annual increase since 1979, benefiting from a strong influx of investment.

On the other hand, spot silver has recorded a higher increase than gold this year, gaining 138% and attracting the attention of investors. StoneX senior analyst Matt Simpson noted that December typically provides positive returns for gold and silver, suggesting that bulls may proceed with caution.

Expectations for Interest Rate Cuts and Future Period

Considered a safe haven, gold is supported by escalating geopolitical tensions, central bank purchases, and expectations that the Fed will announce lower interest rates next year. After recent interest rate decisions, markets forecast that the Fed will implement two interest rate cuts next year. The slowdown in the labor market and the Fed adopting a more dovish stance strengthens expectations for a rate decrease.

Investors continue to closely monitor these developments in the gold and silver markets. The strong performance of both metals increases investors' desire to diversify their portfolios.