"Safe-haven assets + interest rate cuts" dual engine ignites precious metals market! Gold continues to hit new highs, surpassing $4180, while silver also shows strength.

Benefiting from the escalation of trade tensions between China and the United States and market expectations of further rate cuts by the Fed this year, the price of gold has climbed to record highs, and the price of silver has also risen. On Wednesday, as of the time of writing, the spot price of gold rose nearly 1%, hovering around $4180 per ounce, reaching a historic high of $4185 per ounce. The spot price of silver also rose on Wednesday after experiencing volatile fluctuations on Tuesday, rising 1.5% to $52.2 per ounce. On Tuesday, U.S. bond yields fell to their lowest level in weeks. Fed Chairman Powell said on Tuesday that the Fed is expected to cut interest rates by another 25 basis points later this month, despite the severe impact of the government shutdown on its assessment of the economic situation. Powell mentioned the slow pace of hiring multiple times and indicated that this situation could worsen further. At the same time, due to the recent escalation of trade tensions between the two largest economies, risk aversion sentiment has swept the markets, increasing the safe haven appeal of gold. In addition, safe haven demand has also been supported by threats to the Fed's independence and the government shutdown. In the silver market, a shortage of liquidity in the London area has triggered a global rush to purchase physical silver, driving benchmark spot prices significantly higher than New York futures prices. On Tuesday, as the price of silver in London fell, the price difference between the two markets narrowed, and borrowing costs for silver in the London area began to decline, although they remain at extremely high levels. Traders remain cautious ahead of the release of the results of the U.S. government's investigation into key minerals under the so-called "232 clause". The investigation covers metals such as silver, platinum, and palladium. Although these metals were officially exempted from tariffs in April, this investigation has reignited concerns about them being included in a new round of tariffs. Since the beginning of the year, prices of the four major precious metals have risen by 58% to 80%, leading the entire commodity market. The rise in gold prices is mainly driven by continued central bank purchases, increased holdings of exchange-traded funds (ETFs), and Fed rate cuts.