Gold prices jumped past $4,400 per ounce on Monday for the first time. Rising safe-haven demand and expectations of future US rate cuts fueled the rally. Silver also surged to an all-time high.
Spot gold was up 1.4% at $4,397.16 per ounce, briefly reaching $4,400.29 earlier in the day. US gold futures for February delivery increased 0.98% to $4,430.30 per ounce. Meanwhile, spot silver climbed 3.3% to a record $69.44.
Gold has risen 67% so far this year, breaking the $3,000 and $4,000 milestones for the first time. If the momentum continues, gold could record its largest annual gain since 1979. Silver has outperformed gold, soaring 138% year-to-date, supported by strong investment demand and supply constraints.
“December usually produces positive returns for gold and silver,” said StoneX senior analyst Matt Simpson. He added that investors should be cautious as year-end trading volumes decline and profit-taking may increase.
Technical analysts expect gold could rise further to $4,427 per ounce after breaking the key resistance at $4,375. Gold’s safe-haven appeal has been reinforced by geopolitical tensions, steady central bank purchases, and expectations of lower US interest rates in 2026.
A weaker US dollar also helped gold by making it cheaper for foreign buyers. Markets currently anticipate two US rate cuts next year, which could further boost demand for gold and other non-yielding assets.
Other precious metals also saw strong gains. Platinum jumped 4.3% to $2,057.15, its highest level in over 17 years. Palladium rose 4.2% to $1,786.45, nearing a three-year peak.
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Analysts say the combination of lower interest rates, geopolitical uncertainty, and strong demand is likely to keep gold and other metals supported in the near term.
