Silver soared above $100: what is happening on the metals market
24 January 05:37
Global precious metals markets have hit historic highs. The price of silver exceeded $100 per ounce for the first time in history, while gold set a new record and approached the psychological mark of $5,000. This was reported by "Komersant Ukrainian" with reference to Reuters.
The rise in prices is happening against a backdrop of geopolitical tensions, expectations of monetary policy easing in the US, and active capital flows from investors into safe-haven assets.
Silver: a historic breakthrough and supply shortage
The spot price of silver rose 4.5% to $100.49 per ounce. Over the past 12 months, the metal has risen in price by more than 200%.
Analysts attribute the rapid growth to several factors:
- high investment demand;
- physical supply shortage in the market;
- limited opportunities for scaling up silver processing.
Silver is increasingly being used not only as an investment asset, but also in industry, particularly in the energy and high-tech sectors, which puts additional pressure on the balance of supply and demand.
Gold at almost $5,000: a new record
The price of gold rose 0.8% to $4,976.49 per ounce after the metal earlier hit a historic high of $4,988.17.
Gold futures in the US for February delivery rose 1.3% to $4,978.60 per ounce.
The rise in gold prices is driven by:
- the deterioration of relations between the US and NATO countries, particularly over Greenland;
- investors’ doubts about the independence of the US Federal Reserve System;
- continued tariff and trade uncertainty;
- active purchases of gold by central banks;
- the gradual shift away from the dollar in international reserves.
Expectations regarding Fed rates
Markets expect the US Federal Reserve to keep its key interest rate unchanged following its meeting on January 27-28. At the same time, investors expect two rate cuts in the second half of 2026, which traditionally supports precious metal prices.
Platinum and palladium also hit new highs
In addition to gold and silver, other precious metals also recorded growth:
- platinum reached a historic high of $2,749.2 per ounce and subsequently traded at $2,735 (4%);
- palladium rose 4.3% to $2,002.22 per ounce.
HSBC analysts note that platinum is increasingly seen as a cheaper alternative to gold, especially given the projected market deficit, which could grow to 1.2 million ounces in 2026.
