Gold and silver have both pushed to fresh record levels, drawing renewed attention across financial markets as investors respond to shifting monetary expectations and rising geopolitical pressure.
Spot gold traded near $4,480 per ounce on Tuesday, after briefly touching an intraday high above $4,495. Silver followed with a move to roughly $69.6 per ounce, also setting a new record. The gains extend a rally that has accelerated into the final weeks of the year, with both metals outperforming most major asset classes.
Over the past week, gold has risen just over 2%, while silver has gained close to 4%, according to spot pricing data.
Rate expectations and geopolitical pressure drive demand
The rally has coincided with growing expectations that the Federal Reserve will begin cutting interest rates in 2026. Markets are currently pricing in two cuts next year, reinforced by reports that President Donald Trump plans to name a new Federal Reserve chair early in 2026, a move investors interpret as supportive of looser monetary policy.
At the same time, the U.S. dollar has extended losses for a second straight session and is on track for its largest annual decline since 2017. A weaker dollar has increased the appeal of dollar-denominated commodities, particularly precious metals.
Geopolitical developments have added another layer of support. Last week, Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela and said he was not ruling out military action. The move has raised concerns about energy supply risks and inflation, prompting some investors to increase exposure to defensive assets.
Carlo Alberto De Casa, an external analyst at Swissquote, said demand for gold remains strong due to a combination of monetary and geopolitical factors, including central bank buying, currency weakness, and ongoing conflict risk.
A historic year for precious metals
The scale of the rally places 2025 among the strongest years for precious metals in decades. Gold is up roughly 69% year-to-date, while silver has climbed about 137%, marking the largest annual gains for both metals since the late 1970s.
Other metals have moved in the same direction. Platinum rose more than 3% to around $2,180 per ounce, its highest level in over 17 years. Palladium gained more than 3% to a three-year high near $1,815. Copper briefly reached almost $12,000 per tonne, driven by supply disruptions, inventory draws, and concerns that additional U.S. import tariffs could take effect in 2026.
Ahmad Assiri, research strategist at Pepperstone, said
"Silver is responding to many of the same macro forces but with added intensity due to its own supply-demand dynamics. Tight supply conditions, combined with strong investment and speculative interest, are magnifying price moves as silver approaches the $70 level,"
Safe-haven demand reflects caution, not retreat
Investor positioning suggests caution rather than broad risk aversion. Equity markets have remained relatively stable, while flows into gold and silver indicate demand for protection without a full shift into cash or bonds.
Arun Sai, senior multi-asset strategist at Pictet Asset Management, said investors increasingly view precious metals as a way to hedge geopolitical and currency risks while staying invested in markets.
Hakan Kaya, senior portfolio manager at Neuberger Berman, described current positioning as a form of insurance against financial and political instability, particularly as concerns around de-globalisation and currency debasement persist.
Spillover effects across markets
Oil prices have also moved higher alongside metals. Brent crude rose more than 2% to around $61.80 a barrel as U.S. pressure on Venezuela intensified. Energy market volatility has added to inflation concerns, reinforcing demand for assets traditionally used as hedges.
Meanwhile, copper’s rally has drawn attention as a signal of underlying supply stress rather than broad economic expansion. Analysts point to shipment front-loading into the U.S. and tight global inventories as key drivers.
What comes next
With year-end liquidity thinning and markets increasingly sensitive to macro headlines, price moves in precious metals are likely to remain volatile. Expectations around Fed policy, dollar performance, and geopolitical developments will continue to shape positioning into early 2026.
For now, gold and silver remain firmly bid, supported by a combination of monetary expectations, geopolitical risk, and sustained demand from both institutional and retail investors.
Gunel Ismayilova
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