In brief
As geopolitical tensions and economic uncertainties persist, gold has reached an all-time high of over $4,400 per ounce, marking a 68% increase this year. Analysts attribute this surge to anticipated US interest rate cuts and increasing demand for safe-haven assets. Silver also hit a record price of $69.44 an ounce, driven by its industrial demand and supply constraints. Central banks are expanding their gold reserves to mitigate economic turbulence, further driving prices higher.
The gold price has hit another record high, trading above $4,400 (£3,275) an ounce for the first time.
The price of the precious metal has risen on expectations the US central bank will cut interest rates further next year, analysts said.
Gold started the year worth $2,600 an ounce, but geopolitical tensions, the Trump tariffs and expectations of rate cuts have added to investor demand for safe haven assets, such as gold and other commodities.
The prices of other precious metals also rose on Monday, with silver hitting a record high as well.
The gold price has risen more than 68% this year, the highest increase since 1979, according to Adrian Ash, director of research at gold bullion marketplace BullionVault.
2025 has seen slow-burning trends around interest rates, war, and trade tensions, which have pushed the price of gold, Ash stated.
After passing the $4,400 an ounce mark on Monday, the spot price of gold hit a high of $4,426.66.
Lower interest rate expectations mean lower returns for investments such as bonds, prompting investors to look towards gold and silver for diversification.
Central banks globally are expanding their gold holdings to counter economic turbulence and reduce reliance on the US dollar, a trend expected to continue into 2026, according to Goldman Sachs.
The steady increase in gold prices reflects its status as a hedge against inflation and economic turmoil, particularly as confidence in financial assets starts to wane.
A weaker US dollar has also contributed to rising gold prices, making it more affordable for international buyers.
Alongside gold, silver experienced significant gains, reaching a record of $69.44 an ounce, with 2025 seeing silver prices up 138% year-to-date.
Other precious metals, including platinum, have shown strong performance due to industrial demand and supply constraints.
Meanwhile, oil prices also rose this week following a US blockade on sanctioned oil tankers from Venezuela.
