On Tuesday, gold prices surged to a fresh all-time high, marking the 50th record-breaking session this year, while silver also reached new peaks. The rally was fueled by investors weighing escalating geopolitical tensions and expectations of further U.S. interest rate cuts.
Spot gold breached the $4,490 per ounce milestone for the first time, following a 2.4% gain in the previous session—its largest single-day jump in over a month. Traders are betting on the Federal Reserve cutting borrowing costs again next year, fostering a low-rate environment that benefits non-yielding precious metals.
Meanwhile, gold's safe-haven appeal strengthened amid heightened geopolitical risks, particularly surrounding Venezuela, after the U.S. blocked Venezuelan oil tankers, intensifying pressure on President Nicolás Maduro’s government. At press time, spot gold rose 1.07% to $4,491.05 per ounce, while silver climbed 0.9% to $69.69 per ounce. Platinum and palladium also advanced.
Gold has soared 70% this year, driven by central bank buying sprees and heavy inflows into gold ETFs. It is on track for its best annual performance since 1979. Data from the World Gold Council shows gold ETF holdings expanded every month this year except May.
Earlier bullish momentum was amplified by U.S. President Trump’s aggressive trade policies and threats to the Fed’s independence. Investors also played a key role, partly due to the "debasement trade"—dumping sovereign bonds and their currencies over fears that ballooning debt levels would erode their value over time.
After dipping from October’s peak of $4,381—a pullback attributed to an overheated rally—gold has rebounded sharply, with prices now poised to extend gains into next year. Banks like Goldman Sachs project further upside, maintaining a $4,900 per ounce base-case target for 2026 while flagging potential upside risks.
Silver also outperformed, briefly rising 1% to $69.7060 per ounce. Its 140% year-to-date surge eclipsed even gold’s rally, supported by speculative inflows and persistent supply imbalances following October’s historic short squeeze. Earlier this month, Shanghai silver futures’ trading volume neared levels seen during the squeeze.
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