Gold hits record high, silver surges to 12-year peak as precious metals outshine stock market
Gold and silver continued their upward momentum on Monday, attracting strong investor interest in precious metals.
Gold futures (GC=F) reached new highs, climbing as much as 0.8% to nearly $2,750 per ounce, while silver futures (SI=F) advanced over 3% before trimming gains, briefly surpassing $34 per ounce—the highest level in 12 years.
Both metals have outperformed the broader market, with gold up 26% year-to-date and silver surging 35%, in contrast to the S&P 500’s (^GSPC) 19% rise in 2024.
A key driver behind gold’s climb has been central bank purchases, which reached record levels in early 2024. BofA analysts estimate gold has overtaken the euro to become the world’s largest reserve asset, second only to the U.S. dollar.
Investor interest has also surged in physically backed gold ETFs, with inflows rising for three consecutive months, according to the World Gold Council.
In silver, the metal extended its rally after jumping over 6% last Friday. Analysts at JPMorgan, referencing sentiment from the recent LBMA/LPPM conference, reported a consensus estimate of $45 per ounce over the next year.
“This bullish outlook reflects silver’s undervaluation relative to gold and broad industrial demand,” JPMorgan analysts noted, pointing to uses in electronics, automotive fuel cells, and solar panels. However, they flagged potential uncertainties if former President Donald Trump wins the 2024 election, which could impact industrial metals prices through tariffs and trade policy adjustments with China in early 2025.
Gold futures (GC=F) reached new highs, climbing as much as 0.8% to nearly $2,750 per ounce, while silver futures (SI=F) advanced over 3% before trimming gains, briefly surpassing $34 per ounce—the highest level in 12 years.
Both metals have outperformed the broader market, with gold up 26% year-to-date and silver surging 35%, in contrast to the S&P 500’s (^GSPC) 19% rise in 2024.
A key driver behind gold’s climb has been central bank purchases, which reached record levels in early 2024. BofA analysts estimate gold has overtaken the euro to become the world’s largest reserve asset, second only to the U.S. dollar.
Investor interest has also surged in physically backed gold ETFs, with inflows rising for three consecutive months, according to the World Gold Council.
In silver, the metal extended its rally after jumping over 6% last Friday. Analysts at JPMorgan, referencing sentiment from the recent LBMA/LPPM conference, reported a consensus estimate of $45 per ounce over the next year.
“This bullish outlook reflects silver’s undervaluation relative to gold and broad industrial demand,” JPMorgan analysts noted, pointing to uses in electronics, automotive fuel cells, and solar panels. However, they flagged potential uncertainties if former President Donald Trump wins the 2024 election, which could impact industrial metals prices through tariffs and trade policy adjustments with China in early 2025.