Gold continues its surge, surpassing the $5,200 an ounce mark for the first time.
The price of gold surpassed the historic threshold of $5,200 per ounce on Wednesday for the first time, extending its strong upward momentum after a more than 3% increase the previous day. This surge is primarily attributed to the weakening of the U.S. dollar, which has reached its lowest level in nearly four years, amid persistent geopolitical tensions and the anticipation of the Federal Reserve’s decision on its monetary policy.
New Record and Significant Gains Since the Start of the Year
In the spot market, the yellow metal rose by 1.1%, reaching $5,243.58 per ounce after hitting an intraday record of $5,247.21. Since the beginning of the year, gold has recorded an increase of over 20%.
Simultaneously, U.S. gold futures (February delivery) surged by 3.1%, settling at $5,237.70 per ounce, reflecting a renewed interest from investors in safe-haven assets.
The Uptrend Extends to Other Precious Metals
The bullish trend has also spread to other precious metals. Silver gained 1.9% in the spot market, trading at $115.11 per ounce, after reaching an all-time high of $117.69 last Monday. Since the start of the year, the white metal has seen an increase of over 60%.
Meanwhile, platinum advanced by 2% to $2,692.60 per ounce, following a record high of $2,918.80 on Monday, while palladium rose by 1.4% to $1,961.68.
An Uncertain Global Context Favoring Safe-Haven Assets
This remarkable performance of precious metals reflects the prevailing uncertainty dominating international markets, fueled by currency volatility and geopolitical risks. These factors have intensified investors’ attraction to assets deemed as safe havens, with gold leading the pack.
