The world price of metals today, 27th of December; Gold on the way to the historic ceiling

reported by Mehr Reporter The market of precious metals witnessed a noticeable growth on Thursday. The price of gold reached its highest level in a month by crossing $2,690 per ounce. Meanwhile, silver climbed to $31 per ounce, on the verge of setting historical records, and copper reached its two-month high. The unexpected decrease in nuclear inflation in the United States and the strengthening of hopes for the expansionary policies of the Federal Reserve were among the key factors of this growth. However, concerns about the world’s trade and financial policies have kept their shadow on this market.

Gold kept The reduction of inflationary pressures in the United States has strengthened hopes for less contractionary policies of the Federal Reserve. The core inflation rate unexpectedly eased and the consumer price index was also reported without a significant increase. (Core inflation is a measure of inflation that does not include price changes of some items that have high price fluctuations in its calculations. Inflation occurs when the price of goods and services increases over a certain period of time. (The core inflation rate usually excludes changes in food and energy prices from its calculations, as their prices can go up and down a lot even during a single day.)

These conditions boosted demand for gold, as lower inflation may prompt the Federal Reserve to cut interest rates, reducing the opportunity cost of holding non-yielding assets. Forecasts show that the Federal Reserve will cut the interest rate by 40 bps by the end of the year, while it was previously estimated at 31 points. However, some Federal Reserve officials emphasized that the fight against inflation continues.

On the other hand, concerns have been raised about continued price pressures from inflationary policies proposed by President-elect Donald Trump, including tariffs on key trading partners and increased deficit spending.

However, due to the fact that the Zionist regime and Hamas reached a cease-fire agreement and the exchange of hostages, the attractiveness of gold as a safe asset in turbulent times has somewhat decreased.

Silver
The price of silver also increased to 31 dollars per The ounce reached a one-month high. Declining core inflation in the US has raised expectations for further interest rate cuts by the Federal Reserve. However, silver remains below its 12-year high ($35 in October). Concerns about uncertain demand in industrial sectors, particularly overcapacity in China’s solar panel industry, have weighed on the silver market.
Copper
Copper futures remained above $4.35 a pound, hitting a two-month high. An unexpected drop in US core inflation has bolstered expectations for the Federal Reserve to cut interest rates and support economic growth. At the same time, hopes for China’s support measures to boost consumption and a projected production cut by Chile, the world’s largest copper producer, have fueled the optimism. However, investors are waiting for political and economic developments after the inauguration of the new American president.

The table below shows the latest world prices of metals in one frame.

Footnote.

bp, bps or bips stands for basis point(s) and means one hundred percent (0.01 percent).