Fed Optimism Drove Gold Prices to Record Highs

Historic Rise in Gold and Silver Markets

In light of new economic data from the U.S., driven by optimism from the Federal Reserve (Fed), gold prices have managed to surpass the $4,400 level for the first time. 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 by 1.6% to reach $4,412. U.S. gold futures found buyers at $4,445, reflecting a 1.3% increase.

Silver Reaches New Records

This rise in gold has also impacted silver. Spot silver prices soared to $69.44, setting a new record. However, after that, prices fell to $68.77, but it 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 this year, managing to surpass $3,000 and then $4,000. Gold is on track to achieve its largest annual increase since 1979, supported by strong investor inflow.

On the other hand, spot silver has outperformed gold with a 138% increase this year, drawing the attention of investors. Matt Simpson, a senior analyst at StoneX, pointed out that December generally provides positive returns for gold and silver, suggesting that bulls may advance cautiously.

Expectations for Interest Rate Cuts and Upcoming Period

Commonly viewed as a safe haven, gold is supported by rising geopolitical tensions, central bank purchases, and expectations that the Fed will announce lower interest rates next year. Following recent interest rate decisions, markets predict that the Fed will implement two rate cuts next year. A slowdown in the labor market and the Fed adopting a more dovish stance strengthens expectations for falling rates.

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.