Precise Investors Editorial Team
Spot silver gained 3.2% to $71.22 per ounce, after hitting a record high of $71.49 earlier
Silver extended its record rally on Tuesday, surpassing the key $70-an-ounce mark, while gold and platinum also hit historic highs.
Spot silver gained 3.2% to $71.22 per ounce as of 20:12 GMT, after hitting a record high of $71.49 earlier. Prices are up 147% year-to-date.
At the bottom of this is the reality of supply and demand in a market that has been in deficit for five years, alongside increasing industrial demand. The safe-haven aspect, expectations of a weaker dollar and lower yields are also contributing to the bid, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Silver’s next target is $75, but year-end profit-taking could trigger a pullback, he said.
Spot gold rose 1.1% to $4,492.99 per ounce after hitting a record $4,497.55.
Bullion has surged nearly 70% this year, driven by geopolitical tensions, strong central bank buying and robust investment demand.
We continue to see the longer-term thematic of central bank foreign reserve diversification as a major tailwind for gold prices through the end of the decade, analysts at SP Angel said in a note.
We see gold rising towards $5,000/ounce next year, the note said.
Spot platinum was 6.8% up at $2,268.95, after scaling a record high of $2,274.10 per ounce earlier in the day. Palladium rose 6.5% to a three-year high of $1,874.22. The sister metals are used in automotive catalytic converters, where they help reduce harmful emissions.
U.S. gold futures for February delivery settled 0.8% higher at $4,505.7.
Meanwhile, the U.S. dollar dropped in a holiday-shortened week. A weaker dollar makes dollar-priced metals more attractive to overseas buyers.
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