Gold and Silver Prices Hit Historic Highs as Investors Flock to Safe Assets

New Delhi: Gold prices climbed past $4,500 per ounce, a level never seen before on Wednesday. Silver also hit new record highs, with both metals drawing strong demand from investors seeking safer places for their money. Analysts say expectations of future cuts in US interest rates and a weaker dollar have made bullion more attractive. 

How much have prices risen?

Spot gold rose above $4,500, while silver pushed past $71 an ounce in global trading. Both metals have shattered earlier records this year as buyers step into precious metals amid economic stress. 

What' behind the strong investor interest?

Experts say several forces are at play:

• Safe-haven demand: With global markets jittery, investors are moving money into gold and silver. 
• Interest rate expectations: Traders are betting that the US Federal Reserve will cut rates next year. Lower rates reduce returns on bonds and make non-yielding assets like gold more appealing. 
• Dollar weakness: A softer US dollar makes metals priced in dollars cheaper for holders of other currencies. 

Are other metals also rising?

Platinum and palladium also climbed to record levels as demand for precious metals broadens beyond gold and silver. Spot platinum was up 2.9 per cent at $2,342.25 per ounce, after rising to an all-time high of $2,347.40, while palladium rose nearly 3 per cent to $1,919.69 per ounce, a three-year peak.