At the beginning of the new year, the precious metals sector has continued its strong performance from the previous year, with the intraday prices of both gold and silver hitting new historical records.
Data from Wind Info shows that on January 12, the spot price of London gold broke through the $4,600 per ounce mark for the first time, reaching an intraday high of $4,611.210 per ounce (as of the time of writing, same below), setting another record high. As of January 12, the international gold price has risen by more than 6% year-to-date. On the same day, the Au99.99 gold spot price on the Shanghai Gold Exchange opened at 1,003.50 yuan per gram, reaching an intraday high of 1,029.00 yuan per gram, also a record high.
It's not just gold that is shining; silver has also shown strong momentum. The spot price of London silver successively broke through the $84 and $85 per ounce barriers during trading on January 12, hitting a high of $85.546 per ounce, likewise achieving a new historical peak.
Regarding the new intraday highs for both gold and silver, Qu Rui, Senior Associate Director of the Research and Development Department at Oriental Gold Trust, stated that current market concerns about the Federal Reserve's independence have resurfaced, leading to a weakening US dollar index and US stock index futures, which in turn drove international gold and silver prices to new highs.
Zhu Hualei, Senior Investment Advisor at Shaanxi Jufeng Investment Information Co., Ltd., indicated that short-term gold trends are primarily driven by three factors: first, the strengthening of expectations for Federal Reserve interest rate cuts; second, geopolitical uncertainties acting as short-term "catalysts" for gold price fluctuations; and third, continued gold purchases by central banks worldwide. In the short term, these factors will continue to influence the trajectory of international gold prices.
From a global central bank perspective, the latest data released by the World Gold Council shows that in November 2025, global central banks had a net purchase of 45 tons of gold. Although this was a slight decrease from October 2025, the level of purchases remained high compared to earlier months in 2025. From the beginning of 2025 to November 2025, the cumulative reported net gold purchases by global central banks reached 297 tons, showing steady performance but lower than the levels seen during the same period in previous record-breaking years.
Qu Rui said, "The strong willingness of global central banks to allocate to gold remains a core factor affecting gold prices. Furthermore, the continuous rise in US debt risks and deepening market skepticism about US fiscal sustainability, coupled with increased volatility in US Treasury yields and a marginal decline in the attractiveness of US dollar assets, are driving capital towards assets with prominent safe-haven attributes like gold. This will also constitute a major support for the upward trend in gold prices."
Looking ahead, Zhu Hualei believes that factors such as the continuation of the Federal Reserve's rate-cutting cycle, ongoing gold purchases by various central banks, and persistent international geopolitical risks will ensure that the safe-haven demand for gold remains in place over the long term.
It is noteworthy that while precious metals prices are hitting new highs, volatility has also increased significantly. Qu Rui analyzed that, considering the potential continuation of the upward trend for precious metals, the market may be searching for a new, widely accepted trading range in the short term. After precious metals prices break through historical highs, the market will seek the next key psychological and technical resistance level.
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