Gold Rally Resumes
Gold’s record-busting rally has resumed, with dip-buyers emerging to push prices closer to the previous session’s high of $4,381.52 an ounce. Despite some easing in trade tensions and prospects of a US government reopening, the precious metal continues to benefit from lower 10-year Treasury yields, which enhance the appeal of non-interest bearing assets. The broader surge in precious metals this year, including an over 80% gain for silver, is underpinned by strong central-bank buying, inflows to exchange-traded funds, and demand for havens amidst geopolitical and trade uncertainties. Investors are closely monitoring US-China relations and economic indicators.
The recent gold rally and impressive silver gains underscore a broad shift in precious metals investment strategies. While gold prices benefit from its traditional role as a safe haven asset amidst economic uncertainty and geopolitical tensions, silver’s more pronounced surge highlights specific market dynamics, including a historic squeeze in the London market. Both metals are bolstered by factors such as central bank buying and robust ETF inflows. The ongoing trade war impact and the backdrop of a potential US government shutdown further accentuate their appeal as an inflation hedge, particularly when Treasury yields decline. This sustained upward trend suggests that investors are increasingly seeking stability outside traditional equities, signaling a potentially enduring bullish sentiment for the commodity market.
| Asset | Spot Price (Singapore, 7:22 a.m.) | YTD Gain (2025) | Previous Session Peak |
|---|---|---|---|
| Gold | $4,365.68/ounce (up 0.2%) | >65% | $4,381.52/ounce |
| Silver | Edged up (after 1% higher Mon) | >80% | Historic squeeze in London |
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