Gold recorded a new record high on Tuesday, with the spot price reaching a historical peak of “$4634.33” per ounce, before settling at “$4609.69,” up “0.4 percent.”
This rise came as a result of the US Consumer Price Index data, which supported expectations that the Federal Reserve would cut interest rates during the current year.
The data showed that core inflation in the United States rose by “0.2 percent” monthly, and “2.7 percent” annually last December, which was less than analysts’ expectations.
After the data was released, US President “Donald Trump” renewed his call for interest rates to be cut “substantially,” considering that the current figures allow for this. While interest rates are expected to remain stable at the current January meeting, investors expect two rate cuts during 2026.
Several factors have contributed to the increased demand for gold as a safe haven, including:
Trade tensions, especially “Trump’s” threat to impose “25 percent” tariffs on countries that trade with Iran.
And the continuation of the war in Ukraine and the recent Russian missile attacks.
The rise was not limited to gold alone, but silver also rose by “4.7 percent” to reach a historical record level of “$89.10” per ounce.
Despite analysts’ warnings of potential sharp fluctuations, the buying trend is still prevalent in the market.
In a related context, platinum rose by “0.1 percent” to reach “$2344.84,” and palladium increased by “1.5 percent” to reach “$1870” per ounce.
