Gold and Silver surge to new records amid safe-haven rush
|Gold & silver are flying today coming off a profit taking pullback on Friday.
More specifically, spot gold surged to new record highs at just under $4,100 and spot silver approached its 1980 peak, hitting just under $52.00 in early U.S. trading today, driven by a combination of safe-haven demand and a dramatic short squeeze, particularly in London’s silver market.
The squeeze has sparked a global rush for physical bullion, with traders even resorting to transporting silver bars via air freight to capitalize on the premium prices in London compared to New York.
December gold futures climbed over $115 to exceed $4,115, while December silver jumped nearly $$3.00 to trade at $50.29.
The ongoing U.S. government shutdown, intensified by President Trump’s permanent layoff order, has deepened partisan divides and stalled reopening negotiations.
Democrats are pushing for healthcare-related concessions, while Republicans accuse them of political grandstanding.
Meanwhile, fresh trade tensions between the U.S. and China have emerged, with both sides introducing new economic restrictions and retaliatory measures.
These tensions are creating ripples across markets, notably in energy.
Crude oil dropped to a multi-month low last week due to concerns over reduced demand amid the trade conflict, compounded by rising supply from both OPEC and non-OPEC nations.
Although prices rebounded slightly, broader market caution remains.
Investors are also weighing easing Middle East tensions, which have lessened the geopolitical risk premium in oil markets.
Technically, gold and silver bulls remain firmly in control, with strong upside momentum.
Gold’s next target is a close above $4,200, while support lies around $3,900.
For silver, breaking past the $50 mark, in the futures market, is the next hurdle, with near-term support seen at $46.70.
Market volatility is expected to persist, as geopolitical uncertainty and liquidity issues continue to dominate the narrative across precious metals and global commodities.
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