Post by : Meena
Hassan
On Wednesday, gold markets showed resilience, staying close to historic peaks as early signs indicated a faster-than-anticipated cooling of U.S. inflation. This favorable data has bolstered optimism regarding potential interest rate cuts, intensifying the demand for precious metals. In a remarkable achievement, silver also crossed the $90 threshold, driven by increasing demand amid global uncertainty.
Spot gold rose almost 1%, trading at $4,627.95 per ounce by 0406 GMT, just below its record high achieved the day prior. Meanwhile, February delivery gold futures in the U.S. gained 0.8%, reaching $4,635.60, as traders built long positions in light of improving overall sentiment in commodity markets.
The surge can primarily be attributed to recent U.S. inflation numbers that fell short of expectations, reinforcing views that the Federal Reserve may adopt a more dovish policy. Lower borrowing costs generally enhance the allure of gold, as they diminish the attractiveness of interest-yielding assets and boost demand for stable stores of value.
Silver's previous highs were outdone as it surged beyond $90 an ounce, marking a significant turning point. Market analysts noted that strong industrial usage, increased buying for safety, and speculative interest have all played essential roles in this price leap, while expectations of prolonged monetary easing further stoke investor excitement.
Broader geopolitical instability has also provided a favorable backdrop for precious metals, as ongoing market tensions prompt investors to seek refuge in traditional safe havens.
Experts indicate that gold and silver may continue to receive solid support if inflation stays at bay and anticipations of policy easing persist. Nevertheless, they warn of possible increased fluctuations as market participants react to forthcoming economic data and signals from central banks globally.
English
