Gold tops $4,900'oz; silver and platinum extend record #8209;setting rally

Gold prices exceeded $4,900 per ounce for the first time on Thursday, driven by ongoing geopolitical issues, a weaker U.S. dollar, and predictions of interest rate cuts from the Federal Reserve. Meanwhile, silver and platinum also reached new record highs. As of 01:51 p.m. ET (18:51 GMT), spot gold hit a peak of $4,917.65 per ounce. U.S. gold futures for February delivery rose by 1.6% to settle at $4,913.4 per ounce. The U.S. dollar fell by 0.4%, which made gold, priced in dollars, more appealing to buyers from other countries. Peter Grant, vice president and senior metals strategist at Zaner Metals, explained, "Geopolitical tensions, a generally weak dollar, and expectations for the Fed to ease this year are all factors affecting gold demand." In related news, U.S. President Donald Trump announced that he had secured complete and lasting U.S. access to Greenland through a deal with NATO. The head of NATO stated that member countries need to enhance their commitment to security in the Arctic to counter threats from Russia and China. However, details of the agreement were unclear, and Denmark reaffirmed that its control over the island was not negotiable. On the economic front, the latest Personal Consumption Expenditures (PCE) report from the U.S. showed an increase in consumer spending in November and October, marking a third consecutive quarter of solid growth. Markets expect the U.S. central bank to make two quarter-percentage point rate cuts later this year, which would enhance the appeal of gold, which does not generate interest.