Silver hits record high breaking $100 per ounce, gold approaching $5000 milestone.

Due to geopolitical turmoil and expectations of a rate cut by the US, investors have been flocking to safe-haven assets. Silver prices broke through $100 per ounce for the first time ever on Friday, while gold reached new highs, approaching $5000 per ounce. Over the past year, silver has surged by over 200%, driven by challenges in expanding metal refining capacity and continued market supply shortages. Philip Newman, director at MetalsFocus, said, "Silver should continue to benefit from many of the same forces supporting gold investment demand. Continued tariff concerns and low physical liquidity in the London market will provide additional support for silver." "In times of high economic and political uncertainty, gold's role as a safe haven and diversification tool makes it essential for strategic investment portfolios." Independent metals trader Tai Wong said, "This is not just a perfect storm that won't last, but a sign of fundamental changes occurring in the era." Frictions between the US and NATO over Greenland, concerns about the independence of the Federal Reserve, and continued uncertainty over tariffs have driven a surge in demand for safe-haven assets. Central bank buying and a broader trend away from the US dollar have also supported the rise in gold prices. In terms of US policy, it is expected that the Federal Reserve will maintain stable interest rates at their January 27-28 meeting, but the market still expects two further rate cuts in the second half of 2026.