Gold extends blistering rally, breaks above $5,300…sets fresh record high
Summary
- International gold prices hit $5,311.31 per ounce, setting a new all-time high, and have risen more than 20% so far this year.
- Fading confidence in the U.S. dollar and concerns about the Federal Reserve (Fed)’s independence are boosting demand for gold as a safe-haven asset.
- International silver prices also topped $117 per ounce to set a record high, and Deutsche Bank said gold could rise to $6,000 per ounce this year.
International gold prices broke above $5,300 per ounce for the first time on record.
According to Reuters on the 28th (local time), spot gold briefly touched $5,311.31 intraday, setting a new all-time high. Gold has gained more than 20% so far this year.
The dollar’s recent weakness has been a key backdrop to gold’s surge. Linh Tran, chief analyst at XS, said, “It’s not simply because of market jitters that gold is rising,” adding, “It’s because confidence in the global monetary and fiscal order is shifting in a more cautious direction.” Reuters reported that waning confidence in the U.S. dollar and concerns over the Federal Reserve (Fed)’s independence have lifted demand for gold as a safe-haven asset.
Silver prices are also rising. Spot silver has climbed above $117 per ounce this week, rewriting its record high. Silver is up nearly 60% so far this year.
Markets broadly expect gold to remain on an upward trajectory for the time being. Deutsche Bank, a major German bank, recently forecast gold could rise to $6,000 per ounce this year.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
