Gold prices climbed to a record high on Monday, supported by growing expectations of further US interest rate cuts and strong safe-haven demand. The rally extended across precious metals, with silver also hitting an all-time peak as investor appetite remained robust.
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Spot gold rose 1.2 per cent to a record $4,391.92 per ounce, while spot silver jumped 2.7 per cent to reach a historic high of $69.23. The surge capped a strong year for bullion, with gold up about 67 per cent so far in 2025, marking its biggest annual gain in decades.
Silver has significantly outperformed gold this year, gaining around 138 per cent year-to-date. Analysts attributed the sharp rise to a combination of strong investment inflows and persistent supply constraints that have tightened the market.
Market participants said seasonal trends have also supported prices, as December has historically delivered positive returns for both gold and silver. However, some analysts cautioned that thinner trading volumes toward year-end could raise the risk of profit-taking after the sharp run-up.
⚡️SILVER JUST BROKE $69.00 🚀🔥
I thought President Trump was supposed to end the Fed and usher in the Golden Age? Funny how is administration are DEAD SILENT when SILVER hits a new ATH #SilverSqueeze . 🤔🚀
⚡️ OPERATION SANDMAN ⚡️
BRICS figured out how to crush the banker… pic.twitter.com/g3UodpvHhO— TruTherForTruth™️ (@truthenforcerQ) December 22, 2025
Gold’s appeal as a safe-haven asset has been reinforced by ongoing geopolitical and trade tensions, alongside steady purchases by central banks. Expectations that the US Federal Reserve may ease monetary policy further next year have added to the bullish sentiment.
A softer US dollar has provided an additional boost, making gold cheaper for holders of other currencies. Non-yielding assets such as gold typically benefit in lower interest rate environments, as the opportunity cost of holding them declines.
Markets are currently pricing in at least two US interest rate cuts next year, despite cautious messaging from the Federal Reserve. Analysts said a faster-than-expected slowdown in the US labour market or a more dovish policy stance could push gold prices even higher.
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Other precious metals also joined the rally, with platinum rising more than 4 per cent to its highest level in over 17 years, while palladium climbed to a near three-year high, reflecting broad-based strength across the sector.