Gold and Silver Prices Soar to New Highs
Gold and silver prices have reached new heights on Monday, with gold hitting a record $4,445.8 per ounce and spot gold trading at $4,414.99. This surge marks a nearly 70% increase since the start of the year.
Meanwhile, silver has also broken records, with a spot silver price of $68.98 and a record high of $68.96 per ounce. Prices have gained 128% since the beginning of the year.
Safe Haven Asset
Gold is typically viewed as a safe haven asset during times of economic or geopolitical turbulence. Its value has increased as investors seek to balance their portfolios in response to speculation about next year’s economy.
According to Matthew McLennan, head of global value team at First Eagle Investments, “the monetary value of gold has arguably reemerged” due to outsized fiscal deficits in major economies.
Investor Sentiment
Investors will be watching the race for the nomination of the next chair of the Federal Reserve, with the central bank’s independence and credibility in question following pressure from U.S. President Trump.
McLennan also has his eye on wage inflation, stating that “really what’s going to matter going forward is a function of whether job openings follow corporate earnings higher.”
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