Precious metals rallying, Sina Gold price heading straight for the historical threshold, silver reaching record highs

On Monday Asian market open, spot gold and silver collectively strengthened, with market participation clearly heating up. According to real-time data, spot gold accelerated its short-term rally, approaching $4372 per ounce, with a daily increase of $33; at the same time, silver also hit a record high, rising 1.3% to $68.05 per ounce.

Gold Price Nearing Historic Highs Why Are Precious Metals So Popular

Currently, spot gold is just one step away from the October high of $4381 per ounce, reflecting strong market demand for safe-haven assets. Analytical institutions point out that escalating geopolitical risks are a key driver—U.S. sanctions on Venezuela’s oil supply are intensifying, Ukraine is frequently acting against Russia’s “shadow fleet” in the Mediterranean, all of which reinforce investors’ desire for safe assets.

Another driving force comes from changing expectations of monetary policy. As the latest economic data fail to provide clear guidance on the outlook, market traders generally expect the Federal Reserve to implement two rate cuts by 2026. The accommodative monetary policy environment is a substantial positive for non-yielding gold.

Silver Supply Tightness Continues to Attract Capital Inflows

Silver’s strong performance is particularly noteworthy. Since the historic “short squeeze” in October, speculative funds have continuously flowed in, with no signs of easing supply pressure. Shanghai silver futures trading volume data corroborates this—earlier this month, trading volume approached levels seen during the tight supply period two months ago, indicating sustained high market participation.

Central Banks and Institutions Boost Purchases to Support Gold Prices

The precious metals have performed remarkably throughout the year, marking the strongest annual increase since 1979. Silver has risen over 100% this year, while gold has increased about 66%. This long-term upward trend is supported by multiple factors: global central banks continue to increase physical gold holdings, and institutional investors are heavily accumulating through ETFs and other tools.

Data shows that gold ETFs have seen net inflows for five consecutive weeks, with the World Gold Council’s statistics indicating that fund holdings have increased every month except May. Goldman Sachs analysts recently stated that ETF buyers are competing with central banks worldwide for physical gold bars, and limited supply further supports prices.

Institutions Optimistic About Future Market, Gold Prices Could Rise Further Next Year

Gold strategists at Goldman Sachs set a baseline target of $4900 per ounce for next year, emphasizing that upside risks are even more noteworthy. This suggests there is still room for prices to rise from current levels to the target.

From a technical perspective, analysts note that if gold successfully breaks above the October high of $4381 per ounce, the next target will be $4400, with further breakthroughs potentially reaching $4450 to $4500. Conversely, if prices fall below the support at $4300, key levels to watch include $4285, $4250, and $4200.

Currently, spot gold is quoted at $4372.40 per ounce at 09:02 Beijing time, and market sentiment remains strongly optimistic about the future performance of precious metals.