Gold surged past the historic $4,500-per-ounce mark for the first time on Wednesday, as investors flocked to safe-haven assets amid expectations of further U.S. interest rate cuts next year. Silver and platinum also soared to all-time highs, extending a powerful rally driven by global economic uncertainty and strong speculative sentiment.
Spot gold edged 0.1% higher to trade at $4,492.51 per ounce at 0359 GMT, after touching a record $4,525.19 earlier in the session. U.S. gold futures for February delivery climbed 0.3% to a fresh peak of $4,520.60.
Silver surged 1.2% to $72.27 an ounce, after earlier hitting a record $72.70, while platinum jumped 3.3% to $2,351.05, following a historic high of $2,377.50. Palladium also advanced nearly 2% to $1,897.11, marking its strongest level in three years.
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According to Ilya Spivak, Head of Global Macro at Tastylive, precious metals have been driven by fears surrounding de-globalisation and escalating geopolitical tensions, particularly between the U.S. and China, making gold an increasingly attractive asset free from sovereign risk.
Although thin year-end market liquidity has amplified price volatility, analysts believe the bullish trend is far from temporary. Gold could push towards $5,000 within the next six to twelve months, while silver may advance toward $80 as markets respond to key psychological thresholds, Spivak noted.
Gold has already climbed more than 70% this year, marking its strongest annual performance since 1979, supported by safe-haven purchasing, expectations of U.S. rate cuts, strong central bank buying, de-dollarisation trends and robust ETF inflows. Markets are currently pricing in two Federal Reserve rate cuts next year.
Silver has outperformed gold with gains exceeding 150% year-to-date, buoyed by strong investment demand, its addition to the U.S. critical minerals list and momentum-driven buying.
“Gold and silver have been hitting the accelerator pedal this week,” said Tim Waterer, Chief Market Analyst at KCM Trade, adding that renewed confidence in precious metals reflects their growing appeal as long-term stores of value amid rising global debt concerns.
Platinum and palladium — widely used in automotive catalytic converters — have also soared sharply this year due to tight supply, tariff uncertainty and renewed investor interest. Platinum is up around 160% year-to-date, while palladium has gained over 100%. However, analysts warn that their relatively thin markets could see heightened volatility once liquidity returns.