Spot gold rose 1.2% to a record $4,391.92 an ounce, while spot silver climbed 2.7% to hit a historic peak of $69.23 by 0344 GMT, News.Az reports, citing foreign media.
Gold has gained 67% so far this year, breaking multiple records and crossing the $3,000 and $4,000 per-ounce thresholds for the first time. It is on track for its largest annual increase since 1979.
Silver has posted even stronger gains, surging 138% year to date and significantly outperforming gold, supported by strong investment inflows and ongoing supply constraints.
“With December typically delivering positive returns for gold and silver, seasonal factors are working in their favor,” said Matt Simpson, senior analyst at StoneX. However, he cautioned that after gold’s 4% rise so far this month and with the year nearing its end, traders may need to be cautious as trading volumes thin and the likelihood of profit-taking increases.
Gold, traditionally viewed as a safe-haven asset, has been buoyed by elevated geopolitical and trade tensions, continued central bank purchases and expectations of lower interest rates next year.
A weaker US dollar has also added support by making the precious metal more affordable for buyers using other currencies.
Markets are currently pricing in two US rate cuts for next year despite the Federal Reserve signalling caution. Non-yielding assets such as gold tend to benefit in lower interest rate environments.
Simpson said two Fed rate cuts were pencilled in for 2026, with a faster US jobs slowdown and a shift to a more dovish Fed likely to add further upside to gold.
Elsewhere, platinum XPT= jumped 4.1% to $2,054.25, hitting its highest in more than 17 years, while palladium XPD= climbed 4% to $1,781.32, hitting a near three-year high.
