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On Monday, December 22, gold prices surged to a historic high, marking the best annual performance in over four decades, according to Bloomberg.
Gold bars rose more than 1.5%, surpassing the previous record of $4,381 per ounce set in October. The spike reflects investor demand for “hard” assets amid ongoing geopolitical tensions and mixed economic signals.
Market analysts note that traders are betting the U.S. Federal Reserve may cut interest rates twice in 2026, a move supported by recent economic data and comments from former President Donald Trump advocating for looser monetary policy. Lower rates typically boost non-yielding precious metals.
The rally is also supported by central banks actively purchasing gold and continued inflows into gold ETFs. Goldman Sachs projects gold could reach around $4,900 per ounce in 2026 under its base-case scenario.
Silver has also climbed sharply, rising 2.7% to a record $68.99 per ounce, driven by speculative buying, supply disruptions, and heightened futures activity in Shanghai. Spot prices for gold rose 1.5% to $4,404.12 per ounce in Singapore, while silver increased 2.5% to $68.85. Platinum and palladium also advanced, by 4% and 4.4% respectively.
Earlier in December, gold had reached a six-week high, and silver surpassed $60 per ounce for the first time, reflecting the combined impact of U.S. inflation trends, potential interest rate cuts, and geopolitical tensions around Venezuela.
