Gold and silver prices jumped to record highs on Monday, bolstered by geopolitical and economic uncertainties and growing bets of U.S. interest rate cuts.<\/p>\n
Osakawayne Studios | Moment | Getty Images<\/p>\n
Gold\u00a0prices broke through the $4,600 per-ounce level on Monday for the first time, while silver also jumped to a record high, bolstered by geopolitical and economic uncertainties and growing bets of U.S. interest rate cuts.<\/p>\n
Spot\u00a0gold<\/a>\u00a0jumped 1.3% to $4,469.49 per ounce by 0203 GMT. Bullion hit a record high of $4,600.33 earlier in the day.<\/p>\n U.S.\u00a0gold\u00a0futures<\/a>\u00a0for February delivery firmed 2% to $4,591.10.<\/p>\n “Basically, what is impacting (the metals) for sure is the geopolitical risk factor, which is the main driver for the intraday bullish momentum that’s been seen in both the\u00a0gold\u00a0and silver markets today,” said Kelvin Wong, a senior market analyst at OANDA.<\/p>\n Unrest\u00a0in Iran has killed more than 500 people, a rights group said on Sunday, as Tehran threatened to target U.S. military bases if President Donald Trump carries out his renewed threats to strike the country on behalf of protesters.<\/p>\n Iran’s unrest comes as Trump\u00a0flexes\u00a0U.S. muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing acquiring Greenland by purchase or force.<\/p>\n U.S. employment growth\u00a0slowed\u00a0more than expected in December, data showed on Friday, amid job losses in the construction, retail and manufacturing sectors.<\/p>\n However, a decline in the unemployment rate suggested the labor market was not rapidly deteriorating.<\/p>\n Investors currently expect at least two Federal Reserve<\/a> rate cuts this year. A softer job market makes rate cuts more likely.<\/p>\n Fed Chair Jerome Powell said on Sunday the Trump administration had threatened him with a criminal indictment over Congressional testimony, an\u00a0action\u00a0Powell called a “pretext” aimed at putting further pressure on the central bank to lower rates.<\/p>\n The dollar retreated from its strongest level in a month, also supporting the rally in\u00a0precious\u00a0metals.<\/p>\n Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.<\/p>\n Spot silver<\/a>\u00a0was up 3.5% at $82.72 per ounce, after hitting an all-time high of $83.96 earlier in the day.<\/p>\n