Gold surged above the previous record of $4,400 per ounce level on Monday, leaping on mounting anticipations of additional U.S. interest rates and robust safe-haven demand, and silver also surged the fray, reaching an all-time high.
Spot gold has surged 1.4 percent at $4,397.16 per ounce, as of 0502 GMT, after breaking the $4,400 barrier to hit a record high of $4,400.29 earlier in the day. Spot silver recorded 3.3 percent to hit a historic high of $69.44.
However, the U.S. gold futures for February delivery increased 0.98 percent to $4,430.30 per ounce. Bullion has already increased by 67 percent this year, along with various records and breaking the $3000 and $4000 per-ounce mark for the first time. It is about to experience the largest annual growth since 1979.
Silver has gone up by 138 percent year-to-date so far this year, beating gold way out of proportion, driven by strong investment flows and due to ongoing supply constraints.
StoneX Senior Analyst Matt Simpson said, “With December usually producing positive returns for gold and silver, seasonality is on their side.”
Simpson added that “Given that gold has already risen 4% this month and we’re nearing the end of the year, bulls may want to tread with caution as volumes are to deplete and odds of profit-taking are also likely on the rise.”
Reuters technical analyst Wang Tao stated that Spot gold can continue to record up to $4,427 per ounce since it has surpassed a pivotal resistance given at $4,375.
Historically considered a safe-haven asset, gold has been backed by increased geopolitical and trade tensions, consistent central bank purchases, and forecasts of decreased interest rates in the coming year.
Therefore, the weaker dollar has also been an extra tailwind, as it makes the metal more affordable to international consumers. Markets are now pricing two U.S. rate cuts next year, although the Federal Reserve has indicated caution. Non-yielding assets such as gold were more likely to pay off in lower interest rates.
Simpson suggested that two Fed rate cuts in 2026, a slower pace of U.S. jobs slowdown, and a more favorable Fed would bring more upside to gold.
Meanwhile, platinum surged 4.3 percent to $2,057.15, hitting its highest in more than 17 years, while palladium climbed 4.2 percent to $1,786.45, hitting a near three-year high.
