Gold and silver prices surged on Wednesday, with spot gold reaching a record high of $4,641.29 per ounce and silver surpassing $92.23 per ounce amid increased demand for safe-haven assets. Gold has gained 6% year-to-date, while silver has outperformed with a 14% increase.
The surge in precious metals is attributed to a spike in buying in China and rising geopolitical tensions. Investors are turning away from traditional assets, such as government bonds, due to concerns over ballooning debt levels. Citi has forecasted gold and silver prices may hit $5,000 and $100 per ounce, respectively, within the next three months.
Despite the strong performance, analysts warn of a potential pullback in prices, advising that a period of consolidation would be beneficial before further gains. Last year, gold and silver posted record gains of 65% and 150%, respectively, marking the best annual performances since 1979.
