Gold and silver prices kicked off the new year with a bang, as both precious metals rose to their highest levels in more than two years.
Gold prices rose to $1,945.90 per ounce on Wednesday, up 1.20% on the day and the highest since October 2018. Silver prices rose to $27.07, up 2.55% on the day and the highest since April 2019.
The surge came amid a flurry of buying activity as investors sought a safe-haven asset amid uncertainty in the global economy. The buying activity was also likely boosted by a weaker US dollar and speculation that more stimulus measures are on the way.
The rally in gold and silver is likely to continue in the near term, as investors remain concerned about the economic outlook and the potential for further monetary easing. The ongoing US-China trade war and Brexit uncertainty are also expected to keep the safe-haven demand for gold and silver alive.