After three days of advances, gold (GC=F) stabilized thanks to the possibility of additional monetary easing in the US after this week's rate decrease.
Silver was trading close to a record high. Bullion was close to $4,285 per ounce and is expected to rise by more than 2% every week.
After cutting the cost of borrowing on Wednesday, Federal Reserve policymakers left the door open for additional interest rate reductions next year. Although the US central bank only signals one cut in 2026, swaps traders are placing bets on two.
Precious metals, which don't pay interest, benefit greatly from a lower interest rate environment. The Fed will start purchasing $40 billion worth of Treasury bills each month on Friday in an effort to replenish the financial system's reserves, which will further strengthen bullion.
Silver has more than doubled and gold has increased by more than 60% this year, putting both metals on course for their highest yearly results since 1979. Increased central bank purchases and a withdrawal by investors from national assets and currencies have supported the searing rally.
Silver has more than doubled and gold has increased by more than 60% this year, putting both metals on course for their highest yearly results since 1979. Increased central bank purchases and a withdrawal by investors from national assets and currencies have supported the searing rally.
According to Dilin Wu, a research strategist at Pepperstone Group Ltd., bullion's structural uptrend still has room to grow. "The medium-term bullish trend is likely to remain intact as long as the Fed maintains a dovish stance, but a surprise uptick in December or January CPI could trigger a brief pullback," she stated.
The World Gold Council reports that, with the exception of May, holdings in gold-backed exchange-traded funds have increased each month this year.
The World Gold Council reports that, with the exception of May, holdings in gold-backed exchange-traded funds have increased each month this year.
In the meantime, tightness and disruptions in major trading centers, along with an increase in demand, have supported silver in recent weeks. On Thursday, the price of an ounce of white gold reached a record $64.3120.
According to Hebe Chen, a senior market analyst at Vantage Markets in Melbourne, "gold's momentum is set to carry into 2026 as solid central-bank demand and renewed ETF inflows, coupled with easier policy and persistent geopolitical tension, keep the macro backdrop firmly supportive."
As of 3:42 p.m. in Singapore, gold has increased 0.1% to $4,285.66 per ounce. Silver reached $63.79, up 0.4%. Palladium rose, whilst platinum was flat. After declining 0.3% during the prior session, the Bloomberg Dollar Spot Index was unchanged.
As of 3:42 p.m. in Singapore, gold has increased 0.1% to $4,285.66 per ounce. Silver reached $63.79, up 0.4%. Palladium rose, whilst platinum was flat. After declining 0.3% during the prior session, the Bloomberg Dollar Spot Index was unchanged.
