Gold prices surged to an all-time high of $4,383.76 per ounce in early trading, eclipsing its previous peak of $4,381.52 set in October. The rally follows a series of US economic data releases last week that strengthened expectations of further monetary easing by the Federal Reserve.
Spot silver also soared high, rising 2.7 percent to a historic $69.23 per ounce, marking another milestone in a year of unprecedented gains.
So far in 2025, gold has climbed 67 percent, breaking multiple records, including the $3,000 and $4,000 per-ounce thresholds for the first time. Silver has outperformed gold spectacularly, surging 138 percent year-to-date, fueled by strong investment demand and ongoing supply constraints.
“With December typically delivering positive returns for gold and silver, seasonality is working in their favour,” said Matt Simpson, senior analyst at StoneX. “However, with gold already up about 4 percent this month and year-end approaching, lower trading volumes could increase the risk of profit-taking.”
The price surge has been bolstered by gold’s longstanding reputation as a safe-haven asset in the face of geopolitical and trade uncertainties, consistent purchases by central banks, and expectations for reduced US interest rates in 2026. A weaker US dollar has also contributed to rising prices by making gold more accessible for international buyers.
Markets are currently pricing in two US interest rate cuts next year, despite the Fed maintaining a cautious stance. Non-yielding assets such as gold typically benefit in a lower interest rate environment. Simpson added that expectations of additional rate cuts, coupled with a slower US employment growth and a more dovish Fed, could further propel gold prices.
In other areas of the precious metals market, platinum rose by 4.1 percent to $2,054.25 per ounce, reaching its highest point in over 17 years, while palladium gained 4 percent to $1,781.32, nearing a three-year peak.