Gold prices surged to an all-time high above $4,400 an ounce on Monday, marking a historic milestone as expectations of U.S. interest rate cuts and strong safe-haven demand fuelled a powerful rally across precious metals markets.
According to Reuters, spot gold climbed as much as $4,400.29 per ounce, its highest level ever, before easing slightly to trade around $4,397.16, up 1.4% on the day. U.S. gold futures for February delivery also rose nearly 1% to $4,430.30 per ounce.
The rally has been extraordinary. Gold has now gained 67% so far this year, breaking through the $3,000 and $4,000 milestones for the first time and putting it on track for its biggest annual gain since 1979.
Silver joined the historic surge, soaring 3.3% to a record $69.44 per ounce, while platinum and palladium also posted multi-year highs. Platinum jumped more than 4% to $2,057.15, its strongest level in over 17 years, while palladium climbed 4.2% to $1,786.45, nearing a three-year high.
Analysts attribute the rally to growing expectations that the U.S. Federal Reserve will begin cutting interest rates next year, despite cautious messaging from policymakers. Markets are currently pricing in two rate cuts, a scenario that typically boosts non-yielding assets such as gold.
Gold’s rise has also been supported by heightened geopolitical tensions, steady central bank buying, and a softer U.S. dollar, which makes bullion cheaper for overseas investors.
Silver has significantly outperformed gold this year, surging 138% year-to-date, driven by strong investment inflows and persistent supply constraints.
While analysts note that December seasonality tends to favour precious metals, some caution that thinner year-end trading volumes could increase the risk of profit-taking.
Still, with safe-haven demand strong and expectations of easier monetary policy building, the precious metals rally shows little sign of cooling as markets head toward the close of a historic year.
