Gold and silver prices surged to record levels on Monday as investors moved toward safe-haven assets. Rising geopolitical tensions, expectations of future US interest-rate cuts, and strong investor inflows combined to push both metals toward their strongest annual performance in decades.
Precious Metals Set New Records
Gold climbed above $4,400 an ounce for the first time during New York trading, extending a rally that began earlier this year. Silver followed closely, rising above $69 an ounce and approaching the $70 mark.
Gold and silver prices reached all-time highs during New York trading, supported by safe-haven inflows and market expectations Source: TradingView
The gains placed both metals on track for their strongest annual performance since 1979. Analysts linked the move to a combination of macroeconomic expectations and heightened global uncertainty.
Interest-Rate Expectations Drive Demand
Market participants increased positions after traders priced in two US interest-rate cuts during 2026. Lower interest rates generally reduce bond yields, making non-yielding assets more attractive.
The outlook gained support from slower US jobs growth and softer inflation data released in November. These signals reinforced expectations that monetary policy may ease further next year.
US President Donald Trump has also publicly supported looser monetary policy. His stance added momentum to market expectations already forming among traders.
Geopolitical Tensions Strengthen Haven Appeal
Rising geopolitical strain added to demand for precious metals during late trading sessions. The US intensified pressure on Venezuela by expanding an oil blockade against sanctioned tankers.
At the same time, Ukraine attacked a Russian oil tanker in the Mediterranean Sea for the first time. These developments increased concerns around global energy security.
Analysts noted that gold and silver often attract buyers during periods of geopolitical stress. As a result, investor positioning shifted rapidly toward defensive assets.
Investor and Central-Bank Activity
Gold prices have risen more than 65 percent this year, supported by sustained central-bank buying. Several monetary authorities increased physical gold reserves to reduce currency exposure.
Inflows into gold-backed exchange-traded funds also strengthened in recent weeks. Data compiled by Bloomberg showed ETF holdings rising in every month this year except May.
Investors continued to move away from sovereign bonds amid concerns about rising government debt. This so-called debasement trade supported demand for physical bullion.
Market Commentary Circulating on X
Market analysts shared real-time reactions on X as prices surged to fresh highs. Commentary focused on thin year-end liquidity amplifying movements during the session.
Strategists pointed to early positioning around interest-rate expectations as a major factor. Reduced trading volumes near year-end often increase volatility across commodity markets.
Other posts referenced geopolitical developments as reinforcing demand. Analysts agreed that safe-haven flows remained a dominant feature of the current rally.
Silver and Platinum Extend Gains
Silver’s advance was supported by speculative inflows and ongoing supply disruptions across major trading hubs. Shanghai futures volumes spiked earlier this month following October’s short squeeze.
Industrial demand also continued to support silver prices. The metal remains widely used in manufacturing, clean energy, and electronics production.
Platinum rose for an eighth straight session, trading above $2,000 for the first time since 2008. Palladium also jumped, reaching its highest level in nearly three years.
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Outlook from Banks and Analysts
Gold rebounded quickly after retreating from an October peak, when some investors viewed the rally as crowded. Prices have since regained momentum heading into year-end.
Goldman Sachs projected further gains into 2026, setting a base-case forecast near $4,900 an ounce. The bank cited competition between ETF investors and central banks for physical supply.
Analysts added that new participants, including corporate treasuries and stablecoin issuers, are broadening demand. These flows provided additional support as markets assessed conditions heading into next year.
