(NEXSTAR) – The prices of gold and silver hit record highs on Monday, likely in part to investors seeking safety in less-risky assets amid geopolitical tensions.
The price of gold has been rising at a relatively rapid pace for months, analyses hosted by precious-metals dealers including Kitco and APMEX show. As of Monday morning, prices exceeded $4,440 for a single ounce — a record high.
Silver also reached an all-time high of over $69 per ounce, continuing a trend fueled partially by supply issues.
Gold and silver, viewed as safe-haven assets, tend to spike in price during times of geopolitical uncertainty. Most recently, prices jumped after the U.S. Coast Guard said it was pursuing another sanctioned oil tanker in the Caribbean. But investors may also be putting their money into precious medals ahead of an expected cuts to interest rates next year.
High industrial demand for silver, too, has been driving up prices for months, the Silver Institute, an international nonprofit industry group, has observed. A December report from the institute further declared silver the “next generation metal,” calling it “an essential component across multiple high-growth sectors as industries race to embrace digital innovation and meet clean energy mandates.”
Current geopolitical and supply factors also coincide with end-of-year portfolio assessments, which can lead to more diversification into safer investments — and spiking prices for precious metals.
“With December usually producing positive returns for gold and silver, seasonality is on their side,” Matt Simpson, an analyst for the financial services company StoneX, said in a statement obtained by Reuters.
Markets in the U.S. will close early on Wednesday for Christmas Eve and remain closed on Thursday for Christmas. The short week for trading includes several economic reports that could shed more light on the condition and direction of the U.S. economy.
On Tuesday, the government releases the first of three estimates on gross domestic product, a reflection of how the broader U.S. economy fared in the third quarter. On Wednesday, the Labor Department will release its weekly data on applications for jobless benefits, which stands as a proxy for U.S. layoffs.
The Associated Press contributed to this report.