Gold and silver hit records as investors hunt for safety

The price of gold has reached a new record, trading above $4,400 (£3,275) per ounce for the first time. Analysts point out that this rise is due to expectations that the US central bank will lower interest rates further next year. At the start of 2023, gold was priced at $2,600 an ounce, but factors like geopolitical tensions, tariffs from Trump, and hopes for rate cuts have increased demand for safe investments like gold and other commodities. On Monday, prices for other precious metals also increased, with silver reaching a record high. Gold has surged more than 68% this year, marking its largest rise since 1979, according to Adrian Ash, who is the director of research at BullionVault, a gold bullion marketplace. Mr. Ash stated that 2023 has seen ongoing trends regarding interest rates, war, and trade issues, all contributing to the rise in gold prices. He added, “President Trump has really triggered something – and gold has gone crazy this year. You’ve got the trade war, attacks on the US Federal Reserve, and geopolitical tensions, all of which stem from Trump.” After exceeding the $4,400 per ounce threshold on Monday, the spot price of gold reached a peak of $4,426.66.