Fed Optimism Drives Gold Prices to Record Highs

Historical Rise in Gold and Silver Markets

In light of new economic data from the U.S., gold prices have managed to surpass the $4,400 level for the first time, driven by the optimism from the Federal Reserve (Fed). With increased demand for safe-haven assets, gold reached a historical peak, trading at $4,400.29 in the spot market. As of 11:30 AM, prices increased by 1.6% to $4,412. U.S. gold futures also found buyers at $4,445, marking a 1.3% rise.

Silver Also Breaking Records

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

Future of Spot Gold and Silver

Spot gold has shown a 67% increase throughout this year, successfully surpassing the $3,000 mark and then $4,000. Heading towards its largest annual rise since 1979, gold enjoys strong investment inflow.

Meanwhile, spot silver has recorded an even higher increase than gold this year, gaining 138% and attracting investor attention. StoneX senior analyst Matt Simpson pointed out that December typically provides positive returns for gold and silver, indicating that bulls may proceed cautiously.

Expectations for Interest Rate Cuts and the Future

Gold, generally seen as a safe haven, is supported by rising geopolitical tensions, central bank purchases, and expectations of lower interest rates from the Fed next year. Following recent interest rate decisions, markets predict that the Fed will enact two interest rate cuts next year. The slowdown in the labor market and the Fed's adoption of a more dovish stance reinforce expectations for declining interest rates.

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.