Gold prices hit their highest level in six weeks as hopes for a US Federal Reserve interest rate cut this month fuelled demand.
Meanwhile, silver prices on COMEX hit another record high, surpassing $58 per ounce for the first time ever.
Oil prices climbed, fueled by supply worries stemming from various factors.
These include the halt of exports by the Caspian Pipeline Consortium following a significant drone attack, heightened supply concerns due to tensions between the US and Venezuela, and the decision by OPEC+ to keep oil output levels unchanged for the first quarter of 2026.
Gold climbs
Gold prices reached a six-week high on Monday, nearly hitting the $4,300 per ounce mark.
Following recent softer US economic data and dovish statements from Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams, traders have significantly raised their expectations for a December rate cut.
Market sentiment, as reflected by the CME’s FedWatch tool, currently assigns an 88% probability to a rate cut occurring.
Lower borrowing costs generally bolster the appeal of non-yielding gold.
The possibility of reduced interest rates was reiterated by White House economic adviser Kevin Hassett on Sunday, who stated he would gladly accept the position of the next Fed chairman if offered.
Similar to US President Donald Trump, Hassett is an advocate for lower rates.
Treasury Secretary Scott Bessent indicated that Trump is expected to announce the new Fed chair before Christmas.
Further indicators of the Federal Reserve’s policy direction may emerge later in the week with the release of the November ADP employment report on Wednesday and the core US Personal Consumption Expenditures figures for September on Friday.
“The daily MACD had also pulled back towards the ’neutral’ level having been very overbought back in October,” said David Morrison, senior market analyst at Trade Nation.
Silver hits record high
The recent performance of silver has been nothing short of extraordinary, experiencing a rally that has even surpassed the already notable gains seen in other precious metals.
This morning, the momentum culminated in silver reaching a fresh, historic record high, dramatically pushing its price to $58 per ounce.
That represented a gain of around 16% from its close of $50 just over a week ago.
This fierce ascent underscores a period of intense investor interest and speculation, likely fueled by a confluence of factors including inflation hedging, industrial demand recovery, and broader geopolitical instability, driving a flight to safe-haven assets.
The swift move suggests that the market believes the fundamental drivers for silver’s price appreciation are firmly entrenched, positioning the metal for further volatile, but potentially rewarding, trading sessions ahead.
“The move meant that the dreaded triple-top had been avoided. But it’s important to note that these gains came over a holiday period when liquidity was poor and followed an exchange shutdown due to a power outage affecting the CME Group,” Morrison said.
So, where it goes next is anyone’s guess.
At the time of writing, the COMEX silver contract was at $57.975 per ounce, up 1.5% from the previous close.
Oil climbs
Oil prices climbed as concerns over lower supply boosted sentiments on Monday.
Operations at the Caspian Pipeline Consortium (CPC), which transports 1% of the world’s oil, were reportedly halted on Saturday.
The CPC attributed the shutdown to damage sustained by a mooring at its Russian Black Sea terminal from a Ukrainian drone strike.
However, Chevron, a CPC shareholder, stated late on Sunday that oil loadings were still proceeding at the Russian port of Novorossiysk.
Ukraine has attacked two oil tankers that were en route to Novorossiysk.
Separately, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) initially agreed in late November to a pause in production increases.
This decision slowed their efforts to regain market share due to increasing concerns about a potential supply glut.
Brent and WTI crude futures experienced their longest losing streak since 2023, settling lower on Friday for the fourth consecutive month.
This decline was primarily driven by expectations of increased global supply.
Geopolitical uncertainty was introduced over the weekend when Trump declared that “the airspace above and surrounding Venezuela” should be considered closed.
This declaration sparked fresh concerns in the oil market, as Venezuela is a significant oil producer.
Trump later confirmed on Sunday that he had spoken with Venezuelan President Nicolas Maduro, though no further details were provided.
At the time of writing, the price of West Texas Intermediate crude oil was at $58.99 per barrel, up 0.8%, while Brent was at $62.87 a barrel, up 0.8%.
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