Gold and silver prices continue to surge. With the U.S. presidential election just two weeks away and the worsening situation in the Middle East raising uncertainty, the demand for safe-haven assets like gold has spiked. Alongside the gold rally, silver prices have also hit their highest level in 12 years.
According to industry sources on Tuesday, the spot price of gold on the New York Mercantile Exchange (COMEX) soared to $2,740.37 per ounce on Monday, breaking the all-time record once again. On Friday, the price surpassed $2,700 for the first time ($2,720.25), and gold has now risen for five consecutive trading sessions.
Since the beginning of 2024, gold prices have increased by over 30%, maintaining a strong upward trend. Investors view gold as a hedge against geopolitical and economic uncertainties. The Middle East conflict and rising geopolitical risks, such as North Korea’s possible deployment of troops to Russia, have increased the demand for safe-haven assets. The upcoming U.S. presidential election, where Republican candidate Donald Trump is reportedly in the lead, has also spurred risk-averse sentiment.
In particular, the instability in the Middle East seems likely to continue exerting upward pressure on gold prices. Israel is reportedly discussing military action against Iran following a drone attack targeting Prime Minister Benjamin Netanyahu’s residence last weekend. The U.S. Federal Reserve’s (Fed) potential interest rate cuts have also catalyzed the rise in gold prices.
However, the increase in the U.S. dollar and Treasury yields today limited the rise in gold prices. The 10-year Treasury yield reached its highest level in 12 weeks, while the dollar index rose by 0.35%, dampening the purchasing sentiment for gold among foreign buyers.
The rise in gold prices also boosted silver. On Monday, the spot price of silver rose 1.7% in early trading, reaching its highest level since late 2012. It later stabilized at $33.85 per ounce.
Rhona O’Connell, Head of Market Analysis. EMEA & Asia, and Asia at StoneX stated that gold prices rise with increasing uncertainty, adding that uncertainty about the medium-term direction of U.S. foreign policy intensifies market anxiety.
Vivek Dhar, mining and energy commodities strategist at the Commonwealth Bank of Australia, predicted that gold futures could average $3,000 per ounce in the fourth quarter of 2025. Citigroup raised its 6 to 12 month forecast for silver prices from $38 to $40 per ounce.
Meanwhile, money managers are expanding their net long positions in gold, and holdings in exchange-traded funds (ETFs) have surged recently. The world’s largest gold ETF, SPDR Gold Shares, recorded its highest weekly inflow since March, demonstrating strong buying momentum.
As of 8:10 AM on Monday (London LBMA gold price), international gold prices hover around $2,720 per ounce.
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