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Precious metals hit record highs as investors seek refuge
Precious metals—gold, silver, and platinum—recorded significant gains during a highly volatile trading session. Both private investors and central banks are demonstrating a clear intent to hedge against heightened global geopolitical uncertainty and a burgeoning lack of confidence in the US dollar.
Gold futures successfully breached the $5,000 psychological threshold driven by a massive flight to safety, while silver overpassed the $110 level and platinum traded above $2,800.
US durable goods orders surged by 5.3% in November, led primarily by a sharp rise in transportation equipment and non-defence orders.
Market attention shifts this week to monetary policy decisions from the Bank of Canada and the US Federal Reserve, alongside Q4 earnings reports from tech giants including Microsoft, Meta, Tesla, and Apple.
Precious metals post strong gains and hit record highs
Gold, silver, and platinum futures advanced considerably in a session marked by intense volatility as geopolitical instability intensified the demand for safe-haven assets. This rally is the result of a convergence of factors, most notably acute geopolitical tensions, a progressive de-dollarisation sentiment, and market anticipation of a possible shift toward more accommodative monetary policies later this year.
The current geopolitical climate was exacerbated over the weekend when US president Donald Trump threatened to impose a 100% tariff on Canada should Ottawa proceed with a trade agreement with China. Simultaneously, the market is bracing for the Federal Reserve’s upcoming policy meeting. While the CME FedWatch Tool currently suggests a high probability that interest rates will remain unchanged at 3.75%, market participants are closely monitoring the extent to which White House pressure on the FOMC may influence the committee’s future trajectory.
In terms of market performance, the gold futures contract (GCG26) rose by over 2%, surpassing the historic $5,000 psychological barrier. Silver (SIH26) followed suit with a 10% surge to overpass $110 per ounce. Platinum (PLJ26) also appreciated by more than 4% to hit $2,800.
Figure 1. Gold, Platinum, and Silver futures contracts (1987-2026). Source: Data from the COMEX Exchange; Own analysis conducted via TradingView. Note: Prices transformed to a logarithmic scale for comparative analysis.
US durable goods orders exhibit considerable monthly growth
Data from the US Census Bureau released that durable goods orders grew by a substantial 5.3% month-on-month (MoM) in November, comfortably exceeding the analyst consensus of 3.7%. This represents a significant reversal from October’s performance, which saw a contraction of 2.1%.
Reports from Reuters suggest this growth was underpinned by a surge in business investment, particularly in industrial equipment. Despite domestic and global uncertainties, various US sectors have remained resilient against the impact of higher tariffs. Trading Economics information indicates that the primary driver of this growth was transportation equipment, which swung from a 6.3% decline in October to a 14.7% increase in November. Furthermore, orders excluding defence rose by 6.6%, while electrical equipment (+1.7%) and fabricated metal products (+1%) also posted gains.
Equity markets responded positively to the data, with the S&P 500 rising 0.50% to 6,950 points and the Dow Jones Industrial Average gaining 0.64% to 49,412. However, despite the positive economic indicator, the US Dollar Index (DXY) fell 0.40% to 97.07 points, reflecting a persistent bearish sentiment and investor diversification away from the greenback.
Q4 US financial results
The fourth-quarter earnings season continues this week. The following key institutions are scheduled to report, which may contribute to further volatility in US equity markets:
Tuesday
- Boeing Corporation (BA)
- UnitedHealth (UNH)
Wednesday
- Microsoft Corporation (MSFT)
- Meta Platforms (META)
- Tesla Inc. (TSLA)
- International Business Machines (IBM)
Thursday
- Apple Inc. (AAPL)
- Visa Inc. (V)
- Mastercard Inc. (MA)
- Caterpillar Inc. (CAT)
Friday
- Exxon Mobil Corp. (XOM)
- Chevron Corp. (CVX)
- American Express Company (AXP)
- Verizon Communications Inc. (VZ)
Key economic events this week
During this week, several key economic indicators will be released. Some of the most important are the following:
Monday
- Germany: Ifo Business Climate
- US: Durable Goods Orders
Tuesday
- Australia: NAB Business Confidence
- US: The Conference Board’s Consumer Confidence Index
Wednesday
- Canada: BoC Interest Rate Decision
- US: Fed Interest Rate Decision
- US: EIA Crude Oil Stocks Change
Thursday
- Japan: Consumer Confidence
- US: Continuing Jobless Claims
Friday
- European Union: GDP Growth Rate
- Germany: GDP Growth Rate
- US: Producer Price Index (PPI)
