Gold nears record as Iivestors eye tech, Fed moves
Gold extended its rally for a fifth consecutive day, approaching a fresh record, as investors weighed concerns over tech stock valuations and the outlook for US borrowing costs.
Bullion rose by as much as 1.2%, marking its longest winning streak since the surge to an all-time high in October, News Az reports, citng Bloomerg.
On Friday, both gold and silver experienced a sudden pullback from their intraday highs as Wall Street traders booked profits on this year’s biggest artificial intelligence winners. Gold is often seen as a hedge against equity downturns, although its short-term correlation with stocks has increased in recent months.
Expectations for Federal Reserve interest-rate cuts next year are also influencing bullion prices. Weaker-than-expected US non-farm payroll numbers on Tuesday could heighten the likelihood of further rate reductions, providing additional support for the non-yielding metal.
Bullion faces a year of two halves in 2026, peaking near $4,800 before the end of the second quarter before retreating, ANZ Group Holdings Ltd. analysts Soni Kumari and Daniel Hynes said in a note. They also cited “resilient” investment flows and central-bank buying as supportive factors.
Silver, meanwhile, has been bolstered in recent weeks by speculative bets on lingering supply tightness after a historic squeeze in October. The white metal — which hit a record of $64.6573 an ounce on Friday — will continue to find support from a market deficit, as well as resilient industrial demand and uncertainty around US import policy, ANZ said.
The US Geological Survey added silver to its critical minerals list last month, and traders are cautious about taking silver out of America in the event that import tariffs are later imposed. The ANZ analysts said they expected silver to be excluded from tariffs, with confirmation of such a decision likely to prompt outflows of the metal and ease tightness.
Gold gained 0.9% to $4,339.22 an ounce as of 10:46 a.m. in London, nearing October’s record of $4,381.52. Silver gained 2.8% to $63.7102, recouping its losses on Friday. Platinum jumped as much as 3.2% to its highest since September 2011, and palladium also rose. The Bloomberg Dollar Spot Index was down 0.1%.
Similar news
