Historic Surge in Precious Metals: Gold Tops $4,620, Silver Hits Unprecedented Highs Amid Policy and Safe-Haven Demand

New York | EcoPulse24

The precious metals markets experienced a robust and simultaneous rally on Tuesday, propelling both gold and silver to new record highs. This surge was fueled by easing inflationary pressures in the United States and rising safe-haven demand amid escalating political and geopolitical risks.

Gold prices climbed to $4,626.00 per ounce, gaining $27.35 or 0.59%, continuing its upward trajectory to fresh historic peaks. This performance followed data showing annual inflation steady at 2.7% and core inflation at 2.6%, the lowest since 2021. A more subdued monthly reading reinforced expectations that US monetary policy will not become more restrictive.

Silver also surged to unprecedented levels, breaking above $87 per ounce for the first time and currently trading at $88.725, up $3.566. Silver benefited from heightened sensitivity to interest rate outlooks and diminishing risks of near-term monetary tightening, boosting investor demand.

This bullish momentum coincided with renewed hedging demand amid growing concerns over Federal Reserve independence, following a US judicial probe related to Fed Chair Jerome Powell's testimony. Additionally, former President Donald Trump announced a 25% tariff on countries continuing trade with Iran, amid warnings of potential military escalation and widespread domestic protests.

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Analysis
The concurrent rise in gold and silver reflects two main factors: subsiding inflationary pressures, which reduce the likelihood of tighter monetary policy, and heightened political and geopolitical uncertainty boosting demand for safe-haven assets. Silver's outperformance highlights a selective shift within metals markets, with the general trend remaining supportive as long as monetary conditions stay accommodative and global risks persist.