Gold Reaches $4,400; Silver Hits Record High

Gold and silver prices experienced significant increases on Monday, driven by growing speculation that the U.S. Federal Reserve may cut interest rates as early as January. This follows disappointing labor market data and inflation rates that fell short of expectations.

As of 02:03 GMT, gold prices in spot transactions climbed approximately 1% to an all-time high of $4,384.50 per ounce, later surpassing the $4,400 threshold for the first time, reaching a peak of $4,400.29 per ounce.

U.S. gold futures for February delivery also rose by 0.98%, reaching $4,430.30 per ounce.

Meanwhile, silver prices surged between 3% and 3.3% in spot transactions, hitting a record level of $69.44 per ounce, according to Reuters data.

This sharp increase follows the release of U.S. Consumer Price Index data, which showed a year-on-year rise of 2.7% in November, below economists' expectations of 3.1%. This has reinforced market expectations for a potential easing of U.S. monetary policy.

Gold, regarded as a primary safe-haven asset, has risen about 67% since the start of 2025, bolstered by escalating geopolitical tensions, strong central bank demand, and expectations of interest rate cuts in the upcoming year.

The metal is on track for its largest annual gain since 1979, having crossed the $3,000 and $4,000 per ounce marks for the first time this year.

Silver has significantly outperformed gold, increasing approximately 138% since the beginning of the year, driven by robust investment and industrial demand, alongside expectations of a persistent market deficit.

In this context, NeoVision forecasts silver prices could reach $200 per ounce within the next two years.

Matt Simpson, chief analyst at StoneX, noted that seasonal factors contribute positively, as December typically sees favorable returns for gold and silver. Additionally, a declining U.S. dollar enhances the appeal of precious metals for holders of other currencies.

The upward trend was not limited to gold and silver; other precious metals also saw significant gains. Platinum rose by 4.3% to $2,057.15 per ounce, its highest level in over 17 years, while palladium increased by 4.2% to $1,786.45 per ounce, marking its highest price in nearly three years.

This robust performance underscores that non-yielding metals, particularly gold, tend to thrive in low-interest-rate environments, making them attractive to investors amid global economic uncertainty.