Gold and silver both hit new highs!
China News Service, January 12 (Dong Wenbo and Zheng Zheng) -- As the new week begins, precious metals have once again reached new highs!
On the morning of January 12, spot gold broke through the $4,600 mark for the first time, with intraday gains reaching as high as 2%. COMEX gold also broke through the $4,600 mark to reach a new all-time high, rising more than 2% intraday.
Source: Wind, same below
Spot silver rose nearly 5%, surpassing the $84 mark and breaking through the high of two weeks ago to reach a new all-time high. COMEX silver surged more than 5%, approaching $84.
In the domestic commodity futures market, the main Shanghai silver contract opened higher and hit the daily limit, rising more than 11% as of press time. Shanghai gold rose more than 2%, reaching a new high of 1031.30 yuan/gram.
On the morning of the 12th, the A-share precious metals sector was active. As of press time, Xiaocheng Technology rose more than 6%, Shengda Resources rose nearly 5%, Hunan Baiyin, Shandong Gold, and Huaxi Nonferrous Metals rose more than 3%, and Zhaojin Gold, Shandong Gold International, and many other stocks followed suit.
Reuters points out that safe-haven demand drove gold prices up, boosted by geopolitical risks and weak jobs data on Friday, which strengthened market expectations for a Federal Reserve rate cut.
Data from the U.S. Department of Labor shows that, after seasonal adjustments, the U.S. added 50,000 jobs in December 2025. This increase is slightly lower than the 56,000 added in November 2025 and also falls short of economists' expectations of 73,000.
According to the Chinese website of The Wall Street Journal, Beth Ann Bovino, chief economist for the United States, said, "We are at a turning point. Companies that rapidly expanded their workforce in the post-pandemic era are reducing hiring. Despite strong economic growth and continued consumer and business spending, the job market is very fragile, unemployment is low, but companies are not hiring."
Internationally, in addition to Venezuela, the situation in Iran has also attracted attention from various parties in recent days.
According to CCTV News, on January 11 local time, Iranian President Pezechzian stated in a television interview that the government recognizes peaceful protests and considers dialogue with protesters its duty, expressing its willingness to meet with all protest groups in the country. Pezechzian also stated that the United States and Israel are directing "rioters" to create instability in Iran, and called on the public to stay away from "rioters and terrorists."
On the same day, US officials stated that President Trump was considering various options for intervening in Iran, including announcing the deployment of an aircraft carrier strike group to the Middle East, launching cyberattacks, and information warfare. It is understood that Trump is considering all options but has not yet made a decision. According to US officials, Trump is scheduled to be briefed on specific options for responding to the Iranian protests on the 13th.
Li Gang, research director of the China Foreign Exchange Investment Research Institute, told V-view (WeChat ID: VG-view) that the recent record high in gold prices is essentially a concentrated reflection of macroeconomic uncertainties and the repricing of the financial system, rather than being driven by a single event.
Li Gang analyzed that, firstly, the core driving force still comes from the "resonance of expectations of declining real interest rates and safe-haven demand." With the Federal Reserve clearly shifting towards "interest rate cuts + slowing down or even ending QT" by the end of 2025, the central level of the US dollar's real interest rate has shown a downward trend. At the same time, the US fiscal deficit and debt sustainability issues continue to escalate, leading to a rise in the term premium of US Treasury bonds, weakening the risk-free attribute of risk-free assets, and naturally causing funds to concentrate on gold, an asset without credit risk. Recent frequent geopolitical conflicts and high uncertainty in the global political cycle have also amplified the safe-haven premium of gold.
Second, central bank gold purchases and asset allocation rebalancing form a medium- to long-term support. Over the past two years, emerging market central banks have continuously increased the proportion of gold in their foreign exchange reserves, reflecting structural concerns about the stability of the dollar system. This allocation behavior is not a short-term transaction but a strategic adjustment, providing slow-moving support for gold prices. At the same time, some long-term funds (pension funds, sovereign wealth funds) have begun to reassess the hedging value of gold in their portfolios, increasing price elasticity.
Li Gang stated that in the short term, after a rapid rise, gold prices are technically due for profit-taking and high-level consolidation. Particular attention should be paid to the disturbances caused by the phased rebound of the US dollar and fluctuations in US Treasury yields. However, before geopolitical and policy uncertainties are significantly alleviated, the downside is expected to be limited, and the price is more likely to exhibit wide-range fluctuations at high levels.
From a medium- to long-term perspective (2026-2027), Li Gang stated that if the world enters a new normal of low growth, high fiscal pressure, and relatively loose monetary policy, gold will still possess trend-based allocation value. Based on a comprehensive assessment of macroeconomics and capital flows, the core trading range for spot gold in 2026 is estimated at $4300-$5000 per ounce, with the area above $4500 gradually transforming from a sentiment high into an important central reference range. For investors, rather than chasing short-term fluctuations, it is more beneficial to re-understand the role of gold from the perspective of asset allocation and risk hedging. (China News Service APP)
(The views expressed in this article are for reference only and do not constitute investment advice. Investing involves risks, and caution is advised when entering the market.)
