Gold and silver prices soar to new highs as the yellow metal reemerges as a hedge

Group 1: Gold Prices - Gold prices reached a record high of $4,445.8 per ounce, with spot gold trading at $4,414.99, marking an increase of nearly 70% since the beginning of the year [1] - The surge in gold prices is attributed to the decline of risk assets, reinforcing gold's status as a safe haven during economic or geopolitical uncertainty [1] Group 2: Silver Prices - Silver prices also hit a record high of $68.96 per ounce, with spot silver at $68.98, reflecting a 128% increase since the start of the year [2] Group 3: Economic Context - The Federal Reserve's interest rate cut on December 10 has led to a return of optimism in AI stocks, but economic speculation for the upcoming year has made global investors cautious [4] - Significant fiscal deficits in the U.S., U.K., Europe, Japan, and China have contributed to the resurgence of gold's monetary value, as noted by Matthew McLennan from First Eagle Investments [5] Group 4: Gold as a Hedge - McLennan emphasized that gold's value as a potential hedge has become more rationally valued, leading to a rise in other precious metals as well [6] - The long-term fiscal credibility of the United States is crucial for maintaining an independent Federal Reserve and a rational chair, according to McLennan [8] Group 5: Labor Market Insights - McLennan is monitoring wage inflation and its relationship with job openings and corporate earnings, which have recently shown an upward trend [9]