Emirates Voice – Gold, silver, and platinum hit new record highs on Friday amid escalating geopolitical concerns and growing global economic uncertainty. This boosted demand for precious metals as a safe haven for investors.
Spot gold rose 0.3 percent to $4,951.91 per ounce by 03:58 GMT. It touched a new record high of $4,966.59 earlier in the trading session, its highest level ever.
This surge comes as confidence in US assets, particularly the dollar and government bonds, wanes. This is driven by growing concerns about US public debt levels, slowing economic growth, and uncertainty surrounding the Federal Reserve’s monetary policy direction.
Analysts believe that recent economic data in the United States, showing a slowdown in the labor market and weak consumer spending, has strengthened expectations of an interest rate cut in the near future. This supports gold prices due to the lower opportunity cost of holding the precious metal.
The rise wasn’t limited to gold; silver continued its strong gains, driven by investment and industrial demand. This was particularly evident with its expanding use in solar energy and electronics technologies, pushing it to its highest level in over a decade.
Platinum also continued its upward trend, supported by increased demand from the automotive sector, especially given the continued reliance on metal catalysts in hybrid vehicles. This comes alongside supply disruptions in major producing countries, most notably South Africa.
These surges in precious metal prices are occurring against a backdrop of international instability, including the ongoing war in Ukraine and escalating tensions in the Middle East. Furthermore, the intensifying strategic competition between the United States and China has reshaped the global investment landscape. Experts point out that central banks have played a pivotal role in supporting prices, as they have continued to bolster their gold reserves at a record pace over the past two years, particularly in Asia and the Middle East, with the aim of diversifying reserves and reducing reliance on the dollar.
With continued economic and geopolitical uncertainty, analysts expect precious metals to remain supported in the coming period. This comes as investors seek more stable hedges against global volatility.
