Gold surged to a record high, reaching around $3,720 an ounce, supported by strong ETF inflows.
Bullion-backed ETFs jumped 0.9% on Friday, the largest increase since 2022.
The Fed’s recent rate cut and signals of further easing through year-end fueled investor optimism.
Silver also broke resistance at $43, with year-to-date gains surpassing 50%.
Central banks continue to strengthen reserves, adding to demand for safe-haven assets.
Options activity surged in silver, with 1.2 million IShares Silver Trust options traded Friday.
Traders now await US PCE data and Fed Chair Powell’s remarks for further direction.
Platinum and palladium also posted modest gains of more than 0.5%.
What’s Next?
Gold’s strong momentum, coupled with ETF flows and expectations of deeper Fed cuts, suggests the rally still has room to extend. However, short-term volatility could rise as markets digest macro data and Powell’s guidance.

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Japan’s Nikkei has shown signs of recovery, boosted by the Bank of Japan’s dovish signals. In contrast, Germany’s producer price index (PPI) has fallen more than anticipated. Meanwhile, Goldman Sachs has increased its target for the S&P 500 to 6,800.
Global markets are displaying a varied but predominantly positive sentiment as they process a hectic week of central bank decisions and make preparations for a significant inflation report. In the U.S., futures are steady-to-softer after last week’s record highs, with investors looking ahead to speeches from Federal Reserve officials and Friday’s core PCE inflation data. The current positive outlook is being supported by Goldman Sachs, who have raised their year-end target for the S&P 500 to 6,800, citing a more dovish Fed and strong earnings. The semiconductor sector continues to demonstrate robust performance, with the SOX index reaching new highs, maintaining a strategic focus on the AI complex.
In Europe, the DAX is undergoing a rebalancing today as Porsche AG exits the index. Recent economic data from Germany showed a larger-than-expected decline in producer prices, reinforcing a disinflationary trend that could support further easing by the European Central Bank. However, investors are exercising caution in anticipation of the release of the flash Purchasing Managers’ Index (PMI) data for Germany and the Eurozone, which is expected to provide a pivotal indicator of economic activity and could potentially influence market direction.
Japan’s Nikkei index rebounded by over 1% today, as market participants adjusted their expectations in light of the Bank of Japan’s recent decision to begin selling ETFs and J-REITs. The general consensus is that the central bank’s plan will be implemented gradually over a long period, which has eased investor concerns about a sudden tightening of financial conditions. Political developments, including a key LDP leadership contender’s support for a gradual policy normalisation, are also contributing to a supportive environment for Japanese equities, despite potential volatility in the yen.