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

Eurozone consumers' inflation expectations for the year ahead edged up in September, while their outlook for economic growth and the labor market darkened, according to the latest Consumer Expectations Survey published by the European Central Bank (ECB) on Friday.

The survey showed that median expectations for inflation over the next 12 months rose to 3.1 percent in September from 3.0 percent in August. Medium- and longer-term expectations remained unchanged, with those for three and five years ahead at 2.9 percent and 2.5 percent, respectively.

Eurozone annual inflation has climbed steadily since June, reaching 3.8 percent in September -- a three-year high and well above the ECB's 2 percent target, according to data from the EU's statistical office Eurostat.

Meanwhile, expectations for economic growth over the next 12 months fell to minus 1.5 percent from minus 1.2 percent, and the unemployment rate consumers expect in a year's time rose to 11.3 percent from 11.0 percent, pointing to deepening concern about the growth and jobs outlook.

Eurozone consumers' inflation expectations in year ahead edge up