Washington D.C : Gold prices soared to an all time high on Monday driven by growing expectations of interest rate cuts by the United States Federal Reserve and heightened global economic uncertainty. The rally also lifted silver to a historic peak reflecting strong investor demand for safe haven assets amid financial and geopolitical tensions.
Spot gold reached about four thousand one hundred sixty two dollars per ounce while December futures in the United States also advanced. The precious metal has now risen nearly sixty percent since the start of the year supported by falling bond yields, central bank buying, and widespread anticipation that the Federal Reserve will begin cutting rates later this year. Market data indicates investors are pricing in a near ninety seven percent chance of a twenty five basis point rate cut in October and around a ninety percent probability of another cut in December.
Silver followed golds lead climbing to an unprecedented fifty three dollars and forty five cents per ounce. Analysts attribute the surge to a combination of industrial demand, tight physical supply, and safe haven buying. However, experts warn that silver remains more volatile than gold because it is less influenced by central bank reserves and more exposed to fluctuations in manufacturing demand.
Financial institutions are revising their forecasts upward. Bank of America now expects gold to reach as high as five thousand dollars per ounce by next year while Standard Chartered predicts an average of four thousand four hundred eighty eight dollars. Silver could test sixty five dollars if the bullish trend continues.
In India the rally has triggered record prices in local markets. Gold futures on the Multi Commodity Exchange climbed to around one hundred twenty six thousand rupees per ten grams while silver surged beyond one hundred sixty thousand rupees per kilogram. The surge in silver demand ahead of the Diwali season has led to a shortage prompting several mutual funds including UTI Asset Management to temporarily suspend new investments in their silver exchange traded funds.
Industry observers note that global tensions particularly the United States China trade standoff and concerns over a prolonged United States government shutdown have added to the rush toward safe haven metals. Meanwhile investors remain cautious about potential corrections as overbought signals are beginning to appear in technical charts.
Market analysts say the future direction of gold and silver will depend largely on the Federal Reserves decisions and economic indicators from the United States. Persistent inflation or stronger than expected economic growth could slow the pace of rate cuts potentially easing the rally.
For now however precious metals continue to shine as uncertainty grips global markets offering investors both a shield against volatility and a symbol of confidence in uncertain times.