Fed Optimism Drives Gold Prices to Record Highs

Historic Rise in Gold and Silver Markets

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

Silver Also Hits Record

This surge in gold has also affected silver. Spot silver prices reached a new record high of $69.44. However, prices later dipped to $68.77, but it still gained over 2% in value in the last 24 hours. The price of silver per ounce reached $2,946.

Future of Spot Gold and Silver

Spot gold has shown a 67% increase this year, surpassing $3,000 and then $4,000. On track for its largest annual rise since 1979, gold has a strong investment inflow.

Meanwhile, spot silver recorded a higher increase than gold this year, gaining 138% and capturing investors' attention. StoneX senior analyst Matt Simpson pointed out that December generally provides positive returns for gold and silver, suggesting that bulls may proceed with caution.

Expectations of Interest Rate Cuts and the Upcoming Period

Generally seen as a safe haven, gold 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 anticipate two interest rate cuts by the Fed next year. A slowdown in the labor market and the Fed adopting a more dovish stance are strengthening expectations for a rate decrease.

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