Gold prices surged to a record high on Monday, driven by rising expectations of US interest rate cuts and strong demand for safe-haven assets. Silver joined the rally, climbing to an all-time peak as investor appetite for precious metals intensified.
Spot gold rose 1.2 per cent to a record $4,391.92 an ounce, while spot silver gained 2.7 per cent to reach a historic high of $69.23 by early Asian trading. The gains extended a powerful year-long rally across the precious metals market.
Gold has risen 67 per cent so far this year, breaking multiple records and crossing the $3,000 and $4,000 per-ounce levels for the first time. The metal is on track for its strongest annual performance since 1979.
Silver has outperformed even gold, surging 138 per cent year-to-date. Analysts attribute the sharp rise to strong investment inflows and persistent supply constraints, which continue to tighten the market.
#Gold prices surged to an all-time high, supported by expectations of further US #FederalReserve rate cuts, persistent safe-haven demand and a softer US #dollar.
Details by @anshul91_m | #Gold #goldrate #goldprice #goldprices
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— CNBC-TV18 (@CNBCTV18News) December 22, 2025Gold has also benefited from heightened geopolitical and trade tensions, steady central bank buying, and expectations of lower interest rates next year. A softer US dollar has added further support by making bullion more affordable for overseas buyers.
Markets are currently pricing in two U.S. rate cuts next year, despite the Federal Reserve’s cautious outlook. Non-yielding assets, such as gold, tend to appreciate in lower-interest-rate environments, as lower yields make them more attractive to investors.
Read: Gold Prices Rise Further as Global and Local Rates Hit New High
Simpson said traders have also begun factoring in rate cuts for 2026. He added that a sharper slowdown in the US labour market and a shift toward a more dovish Federal Reserve stance could provide additional upside for gold.
Other precious metals also posted strong gains. Platinum jumped 4.1 per cent to $2,054.25 an ounce, marking its highest level in more than 17 years. Palladium rose 4 per cent to $1,781.32, reaching a near three-year high as momentum spread across the sector.
