Gold futures and spot prices surged to new all-time highs on December 23, continuing the rally from earlier in the week. By 12:43 PM, COMEX gold had surpassed $4500 per ounce, marking a year-to-date gain of over 71%, while spot gold exceeded $4485 per ounce, up more than 70% for the year. Domestically, gold prices in China breached the 1000-yuan-per-gram threshold for the first time.
Silver prices also climbed sharply, with spot silver rising over 1% to $69.764 per ounce and briefly touching $70—a historic milestone. COMEX silver surged more than 2% intraday. Meanwhile, domestic gold jewelry prices saw significant adjustments, with brands like Chow Sang Sang and Lao Miao Gold reaching 1403 yuan per gram, up 36 yuan and 35 yuan, respectively, from the previous day.
The rally was not abrupt. On December 22, international gold prices had already broken through the $4400-per-ounce level, setting the stage for further gains. Driven by strong overseas momentum, domestic gold prices followed suit, surpassing the key 1000-yuan mark. By 9:24 AM on December 23, Shenzhen’s Shuibei gold trading price hit 1009 yuan per gram (equivalent to $4479 per ounce). Multiple banks also reported real-time gold accumulation prices exceeding 1000 yuan per gram.
**Regulatory Measures to Cool the Market** Amid the frenzy, the Shanghai Gold Exchange (SGE) issued a risk warning on December 23. The exchange announced fee adjustments for 2026, including waived short-term closing fees for deferred contracts like Au(T+D) and reduced rates for gold spot contracts. Similarly, the Shanghai Futures Exchange (SHFE) imposed a daily trading limit of 10,000 lots for silver futures (AG2602) starting December 24 to curb excessive speculation.
**Key Drivers Behind the Rally** Analysts attribute the surge to multiple factors: heightened expectations of Federal Reserve rate cuts, geopolitical tensions, de-dollarization trends, and robust central bank gold purchases. CITIC Futures noted that easing liquidity expectations remain the core driver for gold’s upward trajectory, with volatility declining since October and the gold-to-silver ratio hitting a five-year low, making long positions attractive.
Central banks worldwide have accelerated gold accumulation to diversify reserves. According to the World Gold Council (WGC), global central banks added 1,045 tons in 2024 (21% of annual production) and 634 tons in the first three quarters of 2025. China’s central bank increased holdings for the 13th consecutive month, reaching 2,305.39 tons by November.
A WGC survey revealed that 95% of central banks plan to continue buying gold in the next 12 months—the highest level since the survey began in 2019. Juan Carlos Artigas, WGC’s Global Head of Research, emphasized that central bank demand will remain a critical factor in 2026, particularly as emerging markets boost gold’s share in reserves.
Chen Li, Chief Economist at Chuancai Securities, projected gold prices could average $4500–$5000 per ounce in 2026, with potential spikes above $5200 under extreme scenarios, supported by rate cuts, geopolitical risks, and central bank demand. Risks include stronger-than-expected U.S. economic resilience or delayed rate cuts due to inflation rebounds.
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