Gold and silver prices climbed to fresh record levels on Monday, underlining a renewed investor turn towards precious metals as a hedge against economic and political uncertainty.
Gold futures touched an all-time high of $4,445.80 per ounce, while spot gold was trading at $4,414.99. The precious metal has risen by almost 70% since the beginning of the year, buoyed by volatility in risk assets and its traditional role as a safe haven during periods of instability.
Silver followed gold’s rally, reaching a record $68.96 per ounce, with spot prices hovering just above that level. Silver prices have surged by around 128% so far this year, reflecting both strong investor demand and its tendency to amplify movements in gold.
Shares of precious metals miners also advanced in premarket trading in the United States. The iShares MSCI Global Gold Miners ETF was up nearly 2.7%, benefiting from the sharp rise in underlying commodity prices.
The renewed strength in precious metals comes despite the Federal Reserve delivering a widely anticipated interest rate cut earlier this month and a recent rebound in technology stocks driven by optimism around artificial intelligence. Analysts suggest that lingering concerns about the global economic outlook for next year are prompting investors to rebalance portfolios and seek defensive assets.
Matthew McLennan, head of the global value team at First Eagle Investments, said gold’s appeal has strengthened amid growing fiscal pressures across major economies, including the United States, the UK and parts of Europe, as well as Japan and China.
“The monetary value of gold has arguably reemerged,” McLennan said in an interview with CNBC earlier this month. He noted that gold had moved from being undervalued relative to nominal assets to what he described as more rational pricing, with other precious metals following suit and showing leveraged gains.
Investors are also closely watching developments around the future leadership of the Federal Reserve, as speculation grows over who will succeed current chair Jerome Powell. Questions about the central bank’s independence have intensified following repeated criticism from US President Donald Trump.
McLennan said long-term confidence in US fiscal policy would be critical in maintaining trust in the Fed’s independence and credibility. He also highlighted wage inflation as a key factor to monitor, pointing to recent increases in job openings and questioning whether they would continue to rise in line with corporate earnings.
As uncertainty persists across markets and policy outlooks, gold and silver appear to have reasserted their role as core defensive assets for global investors.
