Precious metals surged to fresh record highs on Monday, led by gold smashing through the $4,400-per-ounce level for the first time, as investors piled into safe-haven assets amid growing expectations of US rate cuts and rising global tensions.

Gold and Silver Hit Historic Highs

Spot gold climbed as much as $4,420.01 an ounce, marking a new all-time high before easing slightly. The metal is now up about 67% in 2025, putting it on track for its strongest annual performance since 1979.

Silver joined the rally, jumping to a record $69.44 an ounce, with prices up roughly 138% year to date, far outpacing gold thanks to strong investment demand and persistent supply constraints.

Futures markets echoed the move, with US gold futures rising above $4,440, reinforcing bullish momentum heading into year-end.

Rate-Cut Expectations Fuel the Rally

The surge comes as markets increasingly bet that the Federal Reserve will cut interest rates twice in 2026, despite officials signalling caution. Lower rates typically boost non-yielding assets like gold and silver by reducing the opportunity cost of holding them.

Recent US data showing cooling inflation and softer labor market conditions has strengthened the case for easier monetary policy. A weaker dollar has added further support by making metals cheaper for overseas buyers.

Safe-Haven Demand Returns

Beyond rates, geopolitical risk is back in focus. Investors have turned to gold amid escalating tensions tied to US trade policy, the Ukraine conflict, and fresh pressure on Venezuela’s oil exports. Analysts note that gold’s traditional role as a hedge against uncertainty is once again proving decisive.

Central banks have also continued to buy aggressively, while inflows into bullion-backed ETFs have picked up for a fifth straight week, underscoring broad-based demand.

Platinum and Palladium Join the Surge

The rally was not limited to gold and silver.

  • Platinum jumped more than 4% to above $2,050, hitting its highest level in over 17 years and extending a year-to-date gain of roughly 125%.
  • Palladium climbed above $1,780, nearing a three-year high.

Supply tightness, tariff-related stockpiling, and renewed industrial demand have helped drive both metals higher.

Copper Adds to the Metals Boom

Industrial metals have also benefited from structural demand. Copper prices are at record levels, rising more than 30% in the US this year, supported by massive data center construction linked to AI growth and speculation over new tariffs under Donald Trump.

What Comes Next

The outlook for precious metals remains supportive even after the rally. Goldman Sachs expects gold to reach $4,900 an ounce by December 2026, reflecting the view that current gains are driven by lasting shifts, not short-term shocks.

As long as geopolitical tensions stay elevated and interest rates trend lower, gold and silver should remain well supported. Central-bank buying is also likely to continue, reinforcing gold’s role as a strategic hedge rather than a speculative trade.

Short-term pullbacks are possible if tensions ease or rate-cut expectations change, but analysts expect buyers to step in on dips, keeping the broader uptrend intact.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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