Gold and silver update all-time highs on the back of rates and geopolitics
Gold and silver prices have reached record levels amid rising geopolitical tensions and expectations of lower interest rates in the US. This is reported by The Public with reference to Bloomberg.
The price of gold in bullion rose by more than 1.5% to exceed $4,420 an ounce, breaking the October record of $4,381. The spot price rose to $4,412.9. Silver rose to almost $70 an ounce, adding more than 3%.
Both metals are heading for their strongest annual growth since 1979. Since the beginning of the year, gold has risen by almost 70%. The key drivers have been expectations of two rate cuts by the Federal Reserve in 2026, active purchases by central banks, and inflows into gold ETFs.
Additional support for the market was provided by geopolitics. The United States has tightened its oil blockade of Venezuela, and tensions in global trade have again increased demand for safe-haven assets. According to the World Gold Council, assets in gold-backed funds grew almost every month of the year.
Other precious metals also rose in price. Palladium added more than 4%, while platinum rose by more than 4% to surpass $2,000 an ounce for the first time since 2008.
Goldman Sachs analysts predict further price increases and call the baseline scenario at $4,900 per ounce in 2026.
