Quick Hit:

Gold and silver continued their upward trajectory on Monday, with gold hitting record highs and silver reaching a 12-year peak. Both metals have significantly outperformed the broader stock market this year.

Key Details:

• Gold futures rose to a high of $2,750 per ounce, up 0.8%.

• Silver futures briefly topped $34 per ounce, a 12-year high.

• Gold is up 26%, and silver has gained 35% year-to-date, compared to a 19% rise in the S&P 500.

Diving Deeper:

Precious metals extended their dominance over the stock market on Monday, with both gold and silver experiencing significant gains. Gold futures surged as much as 0.8%, touching a new record of $2,750 per ounce, while silver futures jumped over 3% before stabilizing around $34 per ounce — the highest level seen in 12 years.

Year-to-date, gold has climbed 26%, with silver rising an impressive 35%. Both metals have outperformed the broader market, with the S&P 500 gaining only 19% since the start of 2024.

One of the primary drivers behind the rally in gold has been record purchases by central banks. In the first quarter of 2024, these purchases reached an all-time high, with analysts from Bank of America estimating that gold has now overtaken the euro as the second-largest reserve asset globally, trailing only the U.S. dollar.

Additionally, inflows into physically-backed gold exchange-traded funds (ETFs) have surged for three consecutive months, further driving the demand for the precious metal. Meanwhile, silver continues to surge, bolstered by a 6% gain on Friday. Analysts from JPMorgan forecast an average price of $45 per ounce in 2025, driven by industrial demand and the belief that silver is undervalued compared to gold.

As gold and silver remain strong investment options in 2024, investors will likely continue turning to these assets as a hedge against market volatility.