Gold and silver prices have exploded, the reason has been found.

Recently, the prices of gold and silver have once again reached new highs, leading to the rise of both gold and silver prices. One of the driving factors is the increase in bets on a rate cut by the Federal Reserve in 2026 after a series of US economic data was released last week. It is widely expected that there may be two rate cuts next year. If interest rates continue to fall, the yield of cash assets in bonds and money market funds will be further compressed, which in relative terms, increases the attractiveness of physical assets such as gold and silver. Secondly, analysts say that this wave of gold and silver price increases is being driven by currency devaluation trades. Analysis suggests that for investors in developed countries, entering the precious metals sector is mainly due to concerns about the dilution of the value of sovereign bonds and their pricing currencies. For central banks in emerging market countries, buying gold helps to diversify foreign exchange reserves, reduce dependence on US dollar assets, and increase asset safety during global uncertainty. Additionally, approaching the end of the year, investors are also reallocating their asset portfolios.