Both hit new historical highs again! Expectations of interest rate cuts and demand for safe-havens resonate together, with gold and silver both rising.

Due to the intensification of geopolitical tensions and market expectations that the Federal Reserve will further cut interest rates next year, the price of silver continues to hit historic highs, and the price of gold also rises accordingly. As of the time of writing on Monday, the spot silver price rose by 1.84% to $68.3995 per ounce. The spot gold price rose to nearly $4383 per ounce, surpassing the historical high of $4381 set in October, with prices continuing to rise over the past two weeks. Boosted by speculative fund inflows and continued supply shortages after the historic short squeeze in October, the price of silver continued to strengthen. Earlier this month, total trading volume for Shanghai silver futures soared to levels close to the tight supply period a few months ago. Furthermore, although a series of economic data released last week did not provide more clarity on economic prospects, US President Trump has been advocating for significantly lower interest rates, with traders betting on the Federal Reserve cutting rates twice in 2026. Loose monetary policy benefits interest-free gold and silver. Geopolitical tensions have also increased the safe-haven appeal of precious metals. The US has intensified its oil blockade on Venezuela, further pressuring President Nicolas Maduro's government; at the same time, Ukraine launched an attack for the first time in the Mediterranean on an oil tanker belonging to a Russian shadow fleet. Precious metals are experiencing a historic year, with both gold and silver expected to achieve their largest annual gains since 1979. Silver prices have more than doubled, and gold prices have surged by about two-thirds, mainly due to increased purchases by major central banks and inflows into precious metal exchange-traded funds. Data shows that inflows into gold ETFs have increased for five consecutive weeks. Data from the World Gold Council shows that, except for May, the total holdings of these funds have increased every month this year. Meanwhile, the silver price in recent weeks has been boosted by surging demand and supply shortages and mismatches in major trading centers. Analysts Daan Struyven and Samantha Dart of Goldman Sachs stated in a report released last week that they expect gold prices to further rise next year, with a baseline target price of $4900 per ounce, with upside risk. They noted that ETF investors are beginning to compete with major central banks for limited gold reserves.