Precious metals boom on rate cut and more geopolitical tensions

Hong Kong. The prices of precious metals, such as gold and silver, continued the upward trend and recorded new historical records.

Gold surpassed $4,500 per ounce in Asian trading on Wednesday, thanks to optimism that the Federal Reserve will continue to cut rates next year and amid tensions between Washington and Venezuela.

The precious metal hit a high of $4,519.78, a mark that extends a bullish streak that has seen it rise more than 70 percent since early 2025, driven by geopolitical tensions, rate cuts in the United States, strong central bank purchases and solid investment demand.

In the session, US gold futures contracts for February delivery rose 0.8 percent to $4,503.70.

For its part, silver extended its record yesterday by surpassing the barrier of $70 per ounce.

Spot silver rose 2.7 percent to $70.90 an ounce, after hitting an all-time high of $71.06 earlier in the session. Prices have risen 145 percent so far this year.

The dollar fell in a week of shortened holidays. A weaker dollar makes dollar-priced metals more attractive to foreign buyers.

“At the bottom of this reality of supply and demand in a market that has been in deficit for five years, along with growing industrial demand, the safe-haven factor, expectations of a weaker dollar and lower yields are part of that equation,” said Peter Grant, senior metals strategist at Zaner Metals.