Gold Hits Record High Above $3,500 as Traders Seek Safe Haven
Gold surged to a fresh all-time high this morning, climbing past the symbolic $3,500 mark to reach $3,508.50 an ounce, as investors piled into precious metals amid inflation concerns and expectations of US rate cuts.
The move comes as government bond prices continue to slide, pushing yields higher, while a weaker dollar has made gold more attractive to buyers.
Growing demand is also being fuelled by inflows into gold-focused ETFs and increased buying by central banks, both of which have reinforced the rally.
Silver has joined the rally, breaking above $40 an ounce for the first time since 2011 as traders pile in alongside gold.
Inflation fears drive momentum.
Commenting on the surge, Tony Sycamore, analyst at IG, noted that the latest rally began mid-morning yesterday and coincided with a social media post by US President Trump, who claimed prices in the US are “WAY DOWN” with virtually no inflation.
That message, however, stands in stark contrast with recent data showing persistent inflationary pressures. The market reaction comes as Trump continues his reshaping of the Federal Reserve, pushing for sooner and deeper rate cuts, despite the US economy expanding at around 3.5% in Q3, according to the latest Atlanta Fed GDPNow estimate.
With inflation fears lingering and monetary policy uncertainty rising, traders appear to be seeking the traditional safety of gold and silver, driving both metals to multi-year highs.
