Gold prices were shining higher today, hitting a four-month high on interest rate hopes and geopolitical fears.
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Gold Growth
Spot gold gained 0.9% to $3,477.89 per ounce in early trading, hitting its highest point since April 22 this year. U.S. gold futures for December delivery gained 0.9% to $3,548. See chart below:
Spot silver also jumped 2.7% to $40.72 per ounce, marking its highest for 14 years.
“Gold, and especially silver, extended Friday’s strong gains, supported by sticky U.S. inflation, weakening consumer sentiment, expected rate cuts and concerns over Fed independence,” Saxo Bank’s head of commodity strategy, Ole Hansen, said.
Looking at another shiny metal, KCM Trade’s chief market analyst, Tim Waterer added: “Silver is making a move higher in response to expectations of lower rates, while a tight supply market is helping to maintain an upward bias.”
Still Safe
Investors tend to flock to gold in times of low interest rates. They also favor the precious metal in times of geopolitical strife as they look for a safe haven away from the strife.
A ramping up of hostilities between Russia and Ukraine with both sides targeting vital infrastructure and energy facilities darkened the mood as did a very bromance-heavy meeting between the leaders of India, Russia and China.
Tariff uncertainty is also making investors wary, with President Trump set to continue talks with trade partners despite a U.S. court ruling that most of his tariffs are illegal.
The gold price, stocks and ETFs have been on quite the tear this year because of global trade and economic uncertainty.
The SPDR Gold Shares ETF (GLD) is up 31% in the year to date and the VanEck Gold Miners ETF (GDX), which has direct exposure to the gold mining industry, is 86% higher. See chart above.
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