Latest News

Silver breaks through $50, gold stays above $4,000

Gold prices fell on Thursday, as investors took profits, but they remained above $4,000 an 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 of $50 an ounce, thanks to the momentum on the gold market and the strong demand for investment.

As of 1022 ET (1422 GMT), spot gold dropped 0.5% to $4.018.40 an ounce. U.S. Gold Futures for December Delivery fell by 0.9% to $4032.30.

As the Gaza ceasefire comes into effect, speculators will be taking gold chips off of the table. This is because it lowers the temperature within a historically volatile area," said Tai Wong.

Israel and Hamas have signed an agreement to cease fire on Thursday, which is the first phase in President Donald Trump's initiative for ending the war in Gaza.

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.

Bullion surpassed the $4,000 mark per ounce for the first-time on Wednesday. It reached a record of $4,059.05. This non-yielding investment, which has traditionally been considered a hedge in times of geopolitical or economic uncertainty, is up more than 54% so far this year.

The rally was fueled by geopolitical concerns, central bank purchases, ETF inflows on the rise, expectations of U.S. interest rate cuts and economic uncertainty 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. The benchmark rate was lowered by 25 basis points.

The traders are pricing in a cut of 25 basis points in each October and December with 95% and 79% chance respectively.

Silver rose 2.7% to $50.19 per ounce, after having breached the $50 mark in the previous session.

Silver's price has risen by over 69% in this year due to the same macroeconomic factors that have driven gold's rise 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 up more than gold over recent sessions.

Palladium increased 2.5%, to $1,485,55, while platinum was up 0.1% at $1,665,10. (Reporting by Anushree Mukherjee, Kavya Balaraman and John Biju in Bengaluru; Editing by Arun Koyyur)

(source: Reuters)