Gold jumped past the $4,400-per-ounce level for the first time on Monday. Investors expect further US rate cuts and strong safe-haven demand. Silver also joined the rally, hitting an all-time high. Spot gold rose 1.4% to $4,397.16 per ounce as of 0502 GMT. Earlier, it briefly hit a record $4,400.29. Spot silver climbed 3.3% to a historic $69.44.
US gold futures for February delivery increased 0.98% to $4,430.30 per ounce. Bullion has gained 67% so far this year, breaking multiple records. It surpassed the $3,000 and $4,000-per-ounce milestones for the first time. Gold is now set for its biggest annual gain since 1979. Meanwhile, silver has surged 138% year-to-date, significantly outperforming gold. The rally is driven by strong investment inflows and tight supply conditions.
Analyst Matt Simpson from StoneX said December usually brings positive returns for gold and silver. He added that seasonality is helping the rally. However, he warned that gold has already risen 4% this month. With the year-end approaching, trading volumes may decline, increasing the chances of profit-taking. Technical analyst Wang Tao said gold may extend gains to $4,427 per ounce. He noted that gold broke a key resistance at $4,375.
Gold’s safe-haven appeal is supported by geopolitical tensions, steady central bank buying, and expectations of lower interest rates next year. A softer dollar also helps by making gold cheaper for overseas buyers. Markets are pricing in two US rate cuts for next year despite the Federal Reserve’s cautious signals. Non-yielding assets like gold benefit in low-interest environments. Simpson noted that a faster slowdown in US jobs could support gold further.
Other metals also surged. Platinum jumped 4.3% to $2,057.15, its highest in over 17 years. Palladium climbed 4.2% to $1,786.45, reaching a near three-year high. Investors continue to favor precious metals amid economic uncertainties and expectations of easier monetary policy. The momentum suggests strong demand for safe-haven assets as the year closes.
