Precious metal prices "shone" at the beginning of the year
Wind Information data shows that on January 12th, the spot price of gold in London broke through the $4,600 per ounce mark for the first time, reaching a high of $4,611.210 per ounce during the trading session (as of the time of this report, the same below), setting a new historical high. As of January 12th, the international gold price has risen by more than 6% this year. On the same day, the spot price of Au99.99 gold on the Shanghai Gold Exchange opened at 1,003.50 yuan per gram, reaching a high of 1,029.00 yuan per gram during the trading session, also setting a new historical record.
Not only gold is shining, but silver has also shown a strong performance. The spot price of silver in London continuously broke through the $84 per ounce and $85 per ounce marks during trading on January 12th, reaching a high of $85.546 per ounce, also setting a new historical record.
Qu Rui, senior deputy director of the research and development department of Dongfang Jincheng, told the Securities Daily that the current market concerns over the independence of the Federal Reserve have resurfaced, causing the US dollar index and US stock futures to weaken, which in turn has led to new highs in international gold and international silver prices.
Zhu Hualei, a senior investment advisor at Shaanxi Jufeng Investment Information Co., LTD., told reporters that the short-term trend of gold is mainly driven by three factors: First, the strengthening of expectations for the Federal Reserve to cut interest rates; The second is the uncertainty of geopolitics, which acts as a short-term "catalyst" for the fluctuation of gold prices. Third, central banks of various countries have been continuously purchasing gold. In the short term, these factors will continue to influence the trend of international gold prices.
From the perspective of global central banks, the latest data released by the World Gold Council shows that in November 2025, global central banks net purchased 45 tons of gold. Although this was slightly lower than that in October 2025, compared with earlier months in 2025, the gold purchase level still remained in a relatively high range. From the beginning of 2025 to November 2025, global central banks reported a cumulative net gold purchase volume of 297 tons, remaining stable but lower than the level of the same period in previous record years.
Qu Rui said, "The strong willingness of global central banks to allocate gold has also become a core factor influencing the gold price." In addition, the debt risk in the United States has been continuously rising, and market doubts about the sustainability of the US fiscal policy have deepened. Coupled with the increased volatility in US bond yields, the marginal appeal of US dollar assets has declined, driving funds to shift towards assets with prominent safe-haven attributes such as gold. This will also constitute the main support for the upward movement of gold prices.
Looking ahead, Zhu Hualei believes that the continuation of the Federal Reserve's interest rate cut cycle, the continuous purchase of gold by central banks around the world, and the existence of international geopolitical risks, among other factors, will all ensure that the safe-haven demand for gold persists for a long time.
It is worth noting that while the prices of precious metals have reached new highs, their fluctuations have also significantly intensified. Qu Rui analyzed that, considering the possible continuation of the upward trend of precious metals in the future, the market might be seeking a new and widely accepted trading range in the short term. When the prices of precious metals break through historical highs, the market will seek the next key psychological and technical resistance level.
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