On December 22, international gold and silver prices surged to historic highs, marking another "highlight moment" for the year. According to data, spot gold reached $4,412.62 per ounce, up 1.33% intraday, with a peak of $4,420.47 per ounce—setting a new all-time high and accumulating a 68% gain year-to-date. Silver also followed suit, with London spot silver rising to $69.44 per ounce, up 2.47% intraday, also hitting a record high and surging over 139% year-to-date.
The record-breaking rally in precious metals quickly spilled over into the A-share market, with the domestic precious metals sector gaining momentum. Among individual stocks, Silver Corp and Hunan Mining surged by the daily limit, while Xiaocheng Technology and Hunan Silver rose over 7%. Guiyan Platinum climbed more than 6%, and Western Gold and Shengda Resources both gained over 5%. Other precious metal stocks, including Shandong Gold, Zijin Mining, Zhongjin Gold, Sichuan Gold, Chifeng Gold, and Zhaojin Gold, also followed the upward trend.
In the Hong Kong market, WanGuo Gold Group surged 10.96%, China Gold International rose 7.59%, China Silver Group gained 5.80%, Zijin Mining advanced 5.30%, and LaoPu Gold jumped 6.46%.
Experts attribute the strong performance of gold to four key factors. First, gold is historically inversely correlated with the U.S. dollar. As the dollar weakens amid an expected rate-cut cycle, gold prices naturally rise to maintain value equilibrium. Second, persistent expectations of Federal Reserve rate cuts enhance gold's appeal as other asset yields decline. Third, gold's inherent inflation-hedging properties become more valuable amid global fiscal imbalances and inflation concerns. Fourth, geopolitical tensions, such as the ongoing Russia-Ukraine conflict and instability in Venezuela, further fuel demand for gold as a safe-haven asset.
Additionally, some economists highlight two other drivers: the Fed's expanded balance sheet through bond purchases, which has exceeded initial easing expectations, and growing concerns over an AI bubble, prompting investors to shift toward gold for stability.
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