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Gold breaks $50 barrier for the first time, and silver holds above $4,000.

Gold prices fell on Thursday, as investors took profits. However, they remained above $4000 per ounce as the demand for safe-haven assets was driven by expectations of U.S. rate cuts and global uncertainty.

Silver has broken through the psychological barrier at $50 an ounce, thanks to the momentum of the gold market and strong investment demand.

By 1207 pm ET (1607 GMT), spot gold had fallen 0.5% to $4.019.30 an ounce. U.S. Gold Futures for December Delivery fell 0.9% to $ 4,035.30.

Tai Wong is an independent metals dealer. "Speculators take some gold chips off of the table when the Gaza ceasefire comes into effect, since it lowers the temperature in this historically volatile area," he said. Israel and Hamas agreed to cease firing on Thursday, which was the first step in President Donald Trump's initiative for ending the Gaza war.

Overall, however, this trade's faith is not diminished. Wong stated that this rally was so rapid, no real support is seen until $3,850.

On Wednesday, the price of gold surpassed $4,000 an ounce for a first time, hitting a new record high at $4,059.05. The non-yielding investment, which has traditionally been considered a hedge in times of geopolitical or economic uncertainty, is up more than 54% for the year.

The rally was fueled by geopolitical uncertainty, central bank purchases, ETF inflows on the rise, expectations of U.S. interest rate cuts and economic uncertainties related to tariffs.

The minutes of the September meeting of the U.S. Federal Reserve, released on Tuesday, revealed that officials were in agreement about the risks to the U.S. employment market being high enough to warrant rate cuts, but they remained cautious due to stubborn inflation.

In September, the Fed began a new cycle of rate cuts by lowering its benchmark rate to 25 basis points. The traders are pricing in a rate cut of 25 basis points in October and another in December with 95% and 88% chances, respectively. Silver rose 2.6% to $50.13 an ounce.

The metal's price has increased by more than 69% in this year. This is due to the same macroeconomic factors that have driven the gold rally, and the tight supply on the spot market.

David Meger is the director of metals at High Ridge Futures. He said that silver was playing catch-up at this time, and has been moving more aggressively upwards than gold over recent sessions. Palladium rose by 1.8% and platinum fell 0.2%, to $1.659.10. Platinum was down 0.2% at $1,659.10, while platinum was up 0.2%. (Reporting and editing by Arun K. Koyyur and Kirti Donovan in Bengaluru, Kavya B. Balaraman, Anushree Mukherjee)

(source: Reuters)