Global Uncertainty Lifts Gold Prices
Gold prices surged to a record high on Wednesday (January 14th), while silver broke through the psychologically important US$90 level for the first time. This increase was triggered by escalating geopolitical tensions in Iran and market concerns about the independence of the US Federal Reserve, prompting investors to turn to safe-haven assets. At the same time, lower US inflation data also strengthened the outlook for interest rate stability in the near term.
Spot gold rose 0.9% to US$4,627.72 per ounce at 10:01 GMT, after hitting a record high of US$4,639.48. Meanwhile, US gold futures for February delivery rose 0.8% to US$4,636. According to Nemo.money's chief market analyst, Jamie Dutta, the combination of geopolitical and fiscal risks and concerns about central bank autonomy have strengthened gold's appeal as a hedge.
Safe-haven sentiment strengthened after global central bankers publicly expressed support for Federal Reserve Chairman Jerome Powell, following threats from President Donald Trump's administration that could erode confidence in US assets, including the dollar. Geopolitically, ongoing protests in Iran have heightened global tensions, with the death toll reaching 2,571 according to human rights group HRANA, sparking concerns about potential US intervention.
Meanwhile, the US core Consumer Price Index rose 0.2% month-on-month and 2.6% year-on-year in December, reinforcing market expectations for two interest rate cuts this year. Spot silver jumped 4% to US$90.46 per ounce after hitting a record US$91.53, a nearly 27% increase so far this year. Other precious metals also strengthened, with platinum rising 3.5% and palladium posting a slight gain, reflecting investor optimism about the future prospects of precious metals. (alg)
Source: Newsmaker.id
