Gold hits new highs, silver breaks records, geopolitical risks boost demand for safe-haven assets

Source: BlockMedia Original Title: Gold Prices Near All-Time High, Silver Prices Already Break Through… Safe-Haven Assets Surge Amid Geopolitical Shock Original Link: Gold prices surged sharply on the 17th local time, breaking through $4340 and approaching the record high set in October. The market’s demand for safe-haven assets like gold was significantly boosted by the combined geopolitical risks, including expectations of further rate cuts by the Federal Reserve (Fed), President Donald Trump intensifying sanctions on Venezuela, and the renewed escalation of tensions in the Russia-Ukraine situation.

On that day, the spot gold price on the New York Mercantile Exchange rose by 0.85% from the previous day, trading at $4340.01 per ounce; gold futures increased by 0.77%, closing at $4337.50. During trading, it once rose to $4346, nearing October’s high. Based on the closing price, it increased by about $42 from the previous ($4302.18), maintaining a steady upward trend.

The core driver of the rising gold prices is the market’s expectation of a shift in Fed monetary policy. Fed Governor Christopher Waller stated that “the labor market is cooling significantly,” and “the policy rate is 50 to 100 basis points above the neutral level, leaving room for a gradual rate reduction.”

Earlier released November employment data showed the unemployment rate rising to 4.6%, the highest since 2021, providing a basis for market expectations of a Fed rate cut. If the Consumer Price Index (CPI) to be released on the 18th confirms a continued easing trend, the likelihood of further increases in gold prices is widely anticipated.

Geopolitical risks are also supporting the rise in gold prices. President Trump ordered a “complete and comprehensive blockade” on all Venezuelan oil tankers subject to sanctions. Combined with the U.S. Navy’s seizure last week, this increases the possibility of disruptions in energy supplies in Central and South America, and the resulting global tensions have heightened investors’ risk aversion.

Meanwhile, Russian President Vladimir Putin’s strong rejection of territorial concessions from Ukraine also exerts pressure on the market. The military instability in Europe similarly adds stress to the market. Investors are taking a comprehensive view of these issues, accelerating capital flows into safe-haven assets like gold.

Silver prices also surged, hitting a new historical high. Spot silver rose by 4.2%, trading at $66.48 per ounce; silver futures touched $66.65 during trading, breaking the historical high. Some investors see relatively undervalued silver as an alternative to gold, expecting the upward momentum to continue as buying interest increases.