"Boiling" precious metals: Gold breaks 4,000, silver approaches 50, and palladium surges 10%

# Precious Metal Markets Boil Amid Global Safe-Haven Surge  

Source: Wall Street CN  

A global safe-haven wave is pushing the precious metal market to the peak of "frenzy."  

Against the backdrop of overlapping global risk factors, the price of gold has broken through the historic threshold of $4,000 per ounce, with a year-to-date increase of 54%.  

However, the market "frenzy" is not limited to gold. Silver has seen an even more rapid uptrend, outperforming gold with a year-to-date gain of over 67%, and its price is approaching $50.  

Meanwhile, the price of palladium soared by nearly 10% on Wednesday, rising above $1,482, marking the largest single-day increase since May 2023.  

Behind the rally in precious metals lies a combination of risk factors, including geopolitical tensions, concerns over U.S. dollar strength, questions about the Federal Reserve’s independence, persistent inflationary pressures, and sluggish economic growth in Europe. Analysts believe there are almost no factors in sight to halt this rally and predict that this precious metal bull market may continue until 2026.  

## Gold: Resonance Between Safe-Haven Sentiment and Central Bank Purchases  

The core driver of gold’s current bull market is the widespread safe-haven demand globally.  

The market generally agrees that nearly all traditional gold drivers are acting simultaneously—from the Trump administration’s trade tariff policies and the Russia-Ukraine conflict to concerns about inflation. David Wilson, an analyst at BNP Paribas, stated:  

"If you’re an investor, where would you put your money? If you’re worried about the U.S. economic and debt outlook, would you still want to buy U.S. Treasuries, the traditional safe-haven asset? The answer is no."  

Beyond the safe-haven demand from individual investors, the continuous buying by central banks around the world has also provided solid support for gold prices. According to data from consulting firm Metals Focus, global central banks have purchased more than 1,000 metric tons of gold annually since 2022. This year’s purchases are expected to reach 900 metric tons, double the average annual level from 2016 to 2021.  

Supported by strong fundamentals, market expectations for gold prices continue to rise. Goldman Sachs raised its gold price forecast for December 2026 to $4,900 per ounce on Monday. John Meyer, an analyst at consulting firm SP Angel, even described this market trend as a "once-in-a-generation movement."  

## Silver: Driven by Dual Engines of Industrial and Investment Demand  

In the current precious metal rally, silver has performed even more impressively than gold. Currently, silver has not only recorded its largest year-to-date gain since 1979 but also its best relative performance against gold in 15 years.  

On Wednesday this week, the most active silver contract closed at a record high of $48.994 per ounce, briefly surpassing $49 intraday—the last time it reached this level was 14 years ago. Compared with gold, which has broken through $4,000, the price of silver seems negligible. However, silver has risen by 67.55% so far this year, 13.42 percentage points higher than gold’s 54.13% gain.  

Silver’s strength stems from the dual driving forces of its industrial and investment attributes. On one hand, the booming development of sectors such as solar panels and AI-related semiconductors has generated strong industrial demand. On the other hand, some investors who believe gold trading has become overly crowded are turning their attention to silver as an alternative safe-haven tool.  

Additionally, the size of the silver market is far smaller than that of gold, meaning fluctuations in the U.S. dollar’s value have a greater impact on its price. Louis-Vincent Gave, a founding partner of Gavekal Research, wrote in a report that the precious metal bull market will be difficult to stop unless the Federal Reserve turns hawkish or the U.S. dollar strengthens significantly—and neither scenario seems likely at present.  

Paul Wong, a market strategist at Sprott Asset Management, believes that if silver prices can continue to trade above $50, it may mean "the market is re-evaluating its economic value and store-of-value function."  

## Palladium: Following the Trend to Hit a Two-Year High  

The strong momentum of gold and silver has also spread to platinum group metals. Palladium, mainly used as a catalyst in automobile exhaust purification systems, soared by nearly 10% on Wednesday and rose for the third consecutive day, touching above $1,482 per ounce—the highest level since May 2023.  

Over the past month, palladium prices have risen by more than 20%, outperforming gold’s 11% gain and silver’s nearly 17% increase. Although its current price is still less than half of its all-time high of $3,400, its year-to-date gain of nearly 49% is almost on par with that of gold.  

Palladium’s rise is mainly driven by the investment momentum across the entire precious metal sector. Amid heightened political and economic uncertainty, investors’ demand for safe-haven metals is spreading from gold and silver to other precious metal varieties.  

## Risk Warning and Disclaimer  

The market is risky, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific circumstances. Any investment made based on this article shall be at the investor’s own risk.