Gold posts strongest annual gains since 1979; precious metals surge
Other precious metals also recorded sharp gains, with platinum rising 4.3 percent to $2,057.15 an ounce—its highest level in more than 17 years—while palladium climbed 4.2 percent to $1,786.45 an ounce, its strongest level in nearly three years.
Gold prices jumped above $4,400 an ounce for the first time on Monday, driven by rising expectations of further U.S. interest rate cuts and strong demand for safe-haven assets amid global economic and geopolitical uncertainty. Silver also joined the rally, reaching a new all-time high.
By 05:02 GMT, spot gold had risen 1.4 percent to $4,397.16 an ounce, after briefly touching a record high of $4,400.29 earlier in the session. U.S. gold futures for February delivery gained 0.98 percent to $4,430.30 an ounce. Spot silver climbed 3.3 percent to a record $69.44 an ounce, according to news agencies.
Gold has surged 67 percent so far this year, breaking multiple records and surpassing the $3,000 and $4,000 levels for the first time. The metal is now on track for its strongest annual performance since 1979.
Silver has posted even stronger gains, rising 138 percent since the start of the year and significantly outperforming gold.
Matt Simpson, senior analyst at StoneX, said seasonal factors were also supporting prices, noting that December typically delivers positive returns for both gold and silver.
The rally has been fueled by escalating geopolitical and trade tensions, robust central bank purchases, and expectations of interest rate cuts in 2026. A weaker U.S. dollar has further supported prices by making precious metals more attractive to holders of other currencies.
As non-yielding assets, gold and silver tend to perform well in low interest rate environments.
Other precious metals also recorded sharp gains, with platinum rising 4.3 percent to $2,057.15 an ounce—its highest level in more than 17 years—while palladium climbed 4.2 percent to $1,786.45 an ounce, its strongest level in nearly three years.
