Core Viewpoint - The recent surge in gold and silver prices reflects heightened demand for these precious metals amid trade tensions, economic uncertainty, and expectations of interest rate cuts by the Federal Reserve [1][2][3] Price Movements - Gold prices reached a historic high, with COMEX gold futures rising 2.6% to a peak of $4104.3 per ounce [1][2] - Silver also saw significant gains, with prices exceeding $51.71 per ounce, marking a new record [2] Market Reactions - A-shares related to gold experienced a substantial increase, with companies like Western Gold hitting the daily limit [1][2] - Analysts attribute the rise in gold prices to ongoing concerns about U.S. government shutdowns, potential Fed rate cuts, and economic recession fears [2][3] Institutional Predictions - Major financial institutions have raised their gold price forecasts, with UBS predicting $4200 per ounce in the coming months, Morgan Stanley forecasting $4500 by mid-2026, and Goldman Sachs increasing its 2026 forecast from $4300 to $4900 [4] - Ed Yardeni anticipates gold could reach $5000 per ounce by 2026, with potential to exceed $10,000 by 2030 if current trends continue [4][5] Central Bank Activity - Central banks have significantly increased gold purchases, with a total of 415 tons bought in the first half of 2025, supporting the upward trend in gold prices [3] - The inflow into gold ETFs reached a historical high in September, further bolstering demand [3] Market Sentiment - The current market sentiment is characterized by a "fear of missing out" (FOMO), complicating objective assessments of gold's value [5] - Analysts emphasize the importance of maintaining a strategic allocation to gold, suggesting that even at record highs, it remains a prudent investment choice [5][6]