On Tuesday, global markets saw an unprecedented surge in the value of precious metals. The price of gold surpassed the $4,700 per ounce mark for the first time, while silver reached an all-time high, exceeding $95. Experts attribute the rally primarily to escalating geopolitical tensions, which are stimulating demand for safe-haven assets. This was reported by Reuters, writes UNN.
Details
The spot price of gold rose by approximately 2%, reaching $4,757.33 per ounce. Earlier the same day, an absolute record of $4,765.93 was recorded. American futures for February delivery increased by 3.7%, settling at $4,765.80.
The silver market also showed rapid dynamics, breaking the barrier of $95 per ounce for the first time in history.
Reasons for investment demand
Analysts link the excitement to investors' uncertainty about the stability of US assets and the softening of the dollar's exchange rate.
Gold prices have surged into uncharted territory as investors hedge against rising political risks
According to the expert, "A softer dollar provides an additional tailwind for precious metals, amplifying gold's gains at a time when confidence in US assets appears to be wavering."
Impact of geopolitics on the stock market
The situation in the metals market is unfolding against the backdrop of major Wall Street indices falling to a three-week low. Pressure on stocks was caused by new statements from President Donald Trump regarding the introduction of tariffs in the context of his initiatives to establish control over Greenland. These remarks heightened tensions ahead of Trump's planned meeting with global business leaders at the Davos forum.