Precious Metals News
A rate reduction also slashes the cost of borrowing for traders who speculate in precious metals, potentially juicing investment further.
Looking ahead to 2026, analysts expect the broader bull trend to continue, though with higher volatility and periodic consolidation.
Silver, which boasts a far smaller market, has been the star performer this year, rallying nearly 150% as the metal's industrial use has put a focus on supply deficits.
The bank also points to upside risks from private investors, noting that gold exchange-traded funds currently represent just 0.17% of U.S. private financial portfolios.
One precious metal that Buffett likes is silver because of that metal’s industrial and medical uses.
The surge in gold prices has coincided with a depreciation in the value of the U.S. dollar.
Meanwhile, China’s economic momentum slowed, adding to global uncertainty.
UBS expects gold to reach $4,500 by June 2026, driven by lower real yields and continued dollar weakness.
For portfolios, higher equity volatility combined with a positive stock-bond correlation has increased risk and weakened traditional diversification benefits.
Investors are currently pricing in two U.S. rate cuts in 2026, boosting non-yielding gold's appeal.
In a similar vein to ETFs, gold mutual funds allow you to invest in the asset.
Large and organised retailers reported relatively stable sales, while smaller jewellers continued to face subdued footfall.
Market attention now turns to the delayed CPI report due later today.
Investors await November's Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, due on Friday.
Year-to-date, gold is up 67%, underlining strong investor momentum.
The firm expects gold will reach $4,500 per ounce by June 2026.
Chinese gold exchange-traded funds recorded sizable inflows of RMB 16 billion, equivalent to roughly 17 tonnes.
Non-yielding assets, such as gold, typically benefit in a lower interest rate environment.
Lower interest rates tend to be favorable to gold, as it is a non-yielding asset.
Spot gold rose 0.7% at $4,236.57 per ounce at 3:17 p.m. ET (2017 GMT). U.S. gold futures for February delivery settled 0.3% lower at $4,224.70.
Meanwhile, the U.S. Labor Department's JOLTS report showed job openings rose to 7.67 million in October, beating forecasts of 7.15 million, indicating a strong labor market.
Investor attention now turns to this week’s U.S. Federal Reserve meeting, with futures pricing in an 88% probability of a 25-bps rate cut.
Meanwhile, last month, Deutsche Bank had lifted its 2026 gold price forecast to $4,450 an ounce, up from $4,000 earlier, citing steadier investor inflows and sustained central-bank buying.
A strong US economic rebound could push rates higher and strengthen the dollar, applying downward pressure on prices.
Central banks – and investors – see the precious metal as a long-term, reliable store of value during periods of economic turmoil.