Markets
Rally in Precious Metals Drives Prices to Record Highs
Gold reaches a new all-time high of 3,791 US dollars per ounce, silver rises to the highest level in 14 years. Falling interest rates, political risks, and concerns about national debt drive demand – analysts significantly raise their forecasts.
Gold continues record series
For the 37th time this year, the gold price marked a new all-time high. On Tuesday, the quotation climbed to 3,791 US dollars per troy ounce. Silver rose in parallel, reaching around 44 dollars per ounce, the highest value since 2011.
The background is the recent interest rate cut by the US Federal Reserve, which has signaled further steps. Falling interest rates make bonds less attractive and increase the appeal of precious metals, which do not yield current returns.
More than just interest rate policy
Remarkable: The rally continues despite US bond yields being around 4% – actually a headwind for gold. Analysts therefore see additional drivers:
- politische Unsicherheit durch den wachsenden Einfluss von US-Präsident Trump auf die Fed,
- Sorgen um die Stabilität der US-Finanzen bei über 37 Billionen Dollar Schulden,
- geopolitische Spannungen und Handelskonflikte.
Forecasts continue to rise
Goldman Sachs now expects a gold price of up to $5,000 per ounce if only 1% of privately held U.S. Treasury bonds are shifted to gold. Other institutions have also adjusted their expectations upward.
