Gold and Silver Hit Record Highs as Investors Turn to Safe Havens

Gold prices surged to a new all-time high on Monday, breaking above $4,400 (£3,275) per ounce for the first time, as investors increasingly sought safe-haven assets amid economic and geopolitical uncertainty.

Analysts say the sharp rise in gold prices is being driven by growing expectations that the US Federal Reserve may introduce further interest rate cuts in 2025. Lower interest rates tend to boost demand for gold, as the metal does not offer interest returns and becomes more attractive when borrowing costs fall.

At the start of the year, gold was trading at around $2,600 an ounce, but a combination of global tensions, concerns over potential new US trade tariffs, and shifting monetary policy has significantly strengthened investor demand. Ongoing conflicts in key regions and uncertainty around global trade policies have added to market volatility, pushing investors toward assets traditionally viewed as stable during turbulent times.

Silver prices also recorded strong gains, hitting a record high alongside gold. The rise in silver reflects broader interest in precious metals, which are often used as a hedge against inflation and currency fluctuations.

Market experts note that while short-term price movements can be volatile, long-term demand for gold and silver remains strong as investors look for protection against economic instability. With uncertainty expected to continue, precious metals may remain in focus for global markets in the months ahead.