Today, gold climbed 1.3% to $3,635 per ounce, setting a new record high. Investors are currently pricing a 90% chance of a 25 basis point reduction at the next Fed meeting.
Moreover, focus is shifting to the forthcoming US inflation readings that might impact the Fed’s decision on interest rates. Over the last year, gold has exploded by more than 45%, supported by a trend of dollar weakness, continuing central bank purchases, and the escalating geopolitical and economic uncertainties.
Meanwhile, silver rose just under 0.7% to $41.22 per ounce, staying at a high level achieved in the last several sessions. The metal is also attractive to investors because of the safe-haven demand and, especially, solid industrial consumption in the solar energy sector. Silver has been up almost 46% year-over-year, mirroring the trend of the strong investor’s position in the volatile economy.
