Precious metal prices continue to rise, as the value of the U.S. dollar continues to drop. Gold, silver and platinum each jumped to all-time highs this month, with Bloomberg citing escalating geopolitical tensions.
The numbers
Latest numbers show spot gold has risen as much as 1.2% to a peak price above $4,530 an ounce. Spot silver also saw an increase, climbing 5% to about $75 an ounce.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
The “spot” price of precious metals refers to the real-time value of the commodity that would be bought or sold and delivered immediately.
Over the past year, gold prices rose by around 70% and silver rose more than 150%. Both are on track to see their best annual performances since 1979, Bloomberg noted.
Meanwhile, the value of the U.S. dollar continues to decline. The Bloomberg Dollar Spot Index noted the dollar’s value was down 0.7% this week, which the financial news outlet notes is its biggest drop since June.
Why the rise in prices?
Several factors play into the increase in precious metal prices, including federal interest rate cuts and geopolitical tensions. Bloomberg noted that escalating tensions between the U.S. and Venezuela may be increasing the appeal of precious metals, as well as the war between Russia and Ukraine.
Lower borrowing costs are likely also a factor. Traders expect more rate cuts in 2026, which is driving demand for precious metals.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
What this means for the US economy
Precious metal prices and demand can be a signal as to the health of the economy. Analysts say many investors view gold, silver and other metals as a “safe place” when the economy is shaky.
“Many investors and institutions around the world are looking for an alternative defensive asset,” Campbell Harvey, a professor at Duke’s Fuqua School of Business, told ABC News. “Many of those investors realize they are significantly underinvested in gold.”
