Gold Surpasses $4,400 and Silver Hits Record High
Gold and silver prices experienced unprecedented surges on Monday, fueled by growing expectations that the U.S. Federal Reserve will lower interest rates in early January, following the release of weak labor market data and lower-than-expected inflation figures in the United States.
As of 02:03 GMT, spot gold rose approximately 1%, reaching an all-time high of $4,384.50 per ounce, before continuing its ascent and surpassing the $4,400 mark for the first time in history, peaking at a record $4,400.29 per ounce.
Meanwhile, U.S. gold futures for February delivery increased by 0.98%, reaching $4,430.30 per ounce.
Simultaneously, silver maintained its strong gains, climbing in spot transactions by 3% to 3.3%, reaching an unprecedented level of $69.44 per ounce, according to data from Reuters.
This sharp increase follows official data indicating that the U.S. consumer price index rose by 2.7% year-on-year in November, below economists' expectations of 3.1%, reinforcing market convictions regarding an imminent easing of U.S. monetary policy.
Gold is considered a primary safe-haven asset, having increased approximately 67% since early 2025, supported by rising geopolitical and trade tensions globally, strong demand from central banks, and expectations of interest rate cuts in the coming year.
The yellow metal is on track for its largest annual gains since 1979, having surpassed the $3,000 and $4,000 per ounce thresholds for the first time this year.
In contrast, silver has notably outperformed gold, surging approximately 138% since the beginning of the year, amid strong investment and industrial demand, along with rising expectations that the structural deficit in its market will persist.
In this context, the firm "NeoVision" has forecasted that silver prices could reach $200 per ounce within two years.
Matt Simpson, a senior analyst at "StoneX," noted that seasonal factors play a supportive role, explaining that December typically sees positive returns for gold and silver, coupled with the impact of a declining U.S. dollar, which makes precious metals more attractive to holders of other currencies.
The gains were not limited to gold and silver, as other precious metals also saw significant increases; platinum rose by 4.3% to $2,057.15 per ounce, reaching its highest level in over 17 years, while palladium increased by 4.2% to $1,786.45 per ounce, its highest in nearly three years.
This robust performance confirms that non-yielding metals, led by gold, typically thrive in a low-interest-rate environment, making them a preferred destination for investors amid global economic uncertainty.
