Gold, silver prices soar to new record highs as investors hunt for safety

Both Gold and silver prices hit record highs on Monday, driven by geopolitical tensions and market expectations for further U.S. Federal Reserve rate cuts.

Spot gold prices breached 4,420 U.S. dollars per ounce during the intraday trading on Monday, while gold futures contract on the New York Mercantile Exchange (NYMEX) briefly surpassed 4,450 U.S. dollars per ounce, both hitting all-time highs.

In addition, the silver futures contract on NYMEX climbed above 69.5 U.S. dollars per ounce on Monday, surging nearly three percent, also reaching a record high.

Bloomberg News reported that escalating geopolitical tensions and market expectations for further Fed rate cuts were the primary drivers behind the soaring gold prices.

Traders anticipate the Fed will cut rates twice in 2026 following last week's release of a series of U.S. economic data.

Meanwhile, U.S. President Donald Trump has consistently advocated more accommodative monetary policies.

Persistent geopolitical tensions in recent weeks have also heightened the safe-haven appeal of gold and silver.

Bloomberg projected on Monday that both gold and silver are poised for their strongest annual gains since 1979.

Due to purchases of central banks and inflows into exchange traded funds (ETFs), gold prices have surged by about two-thirds this year.

Gold-backed ETFs have recorded five consecutive weeks of increased inflows.

World Gold Council data shows that, except for May, the total holdings of these funds have increased month on month this year.

Beyond central banks, investors have also played a significant role in the gold price rally.

Fueled by concerns over the value of sovereign bonds and their denominating currencies, investors have been fleeing these assets.

The Wall Street Journal reported in October that investors who were concerned about the outlook for currencies like the U.S. dollar were aggressively buying alternative assets such as gold.

Goldman Sachs released a research report on December 18, forecasting that gold prices would rise to 4,900 U.S. dollars per ounce by the end of 2026.

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Unit 2 of the Taipingling nuclear power project in Huizhou City, south China's Guangdong Province, was connected to the grid for electricity generation on Saturday.

Taipingling is the first nuclear power project in the Guangdong-Hong Kong-Macao Greater Bay Area to adopt Hualong One, a domestically developed third-generation nuclear power technology.

Unit 2 will undergo further performance verification as planned, and is expected to officially commence commercial operation in the second half of 2026.

"The successful grid connection of Unit 2 means that another Hualong One unit is now capable of supplying clean electricity to the Greater Bay Area, following the official commercial operation of Unit 1 in April this year. Once Unit 2 enters commercial operation, it is expected to generate over 9 billion kilowatt-hours of electricity annually, which is enough to meet the annual production and living needs of nearly one million people," said Zhang Guoqiang, chairman of Huizhou Nuclear Power Co., Ltd., a subsidiary of China General Nuclear Power Corporation.

Construction of Unit 2 began on October 15, 2020, with a range of digital and intelligent technologies applied throughout the process, leading to a number of technological breakthroughs.

The Taipingling project is planned to house a total of six Hualong One units. Once all six are completed, the plant is expected to generate more than 55 billion kilowatt-hours of electricity annually.

Unit 2 of Taipingling nuclear power project connects with grid for electricity generation