Gold prices have climbed to a fresh record high, trading above US$4,400 an ounce for the first time, driven by rising investor demand for safe-haven assets.
Analysts said the rally has been fuelled by expectations that the US Federal Reserve will cut interest rates further next year. Gold began the year at around US$2,600 an ounce, but geopolitical tensions, trade uncertainties linked to Trump-era tariffs, and interest rate cut expectations have significantly boosted demand.
Other precious metals also surged on Monday, with silver hitting a record high. According to BullionVault research director Adrian Ash, gold prices have risen by more than 68 per cent this year, marking the strongest annual increase since 1979.
Ash noted that ongoing concerns over interest rates, global conflicts and trade tensions have contributed to the sharp rise in gold prices, adding that recent political and economic developments in the United States have intensified investor interest in precious metals.
After breaching the US$4,400 mark, spot gold reached a peak of US$4,426.66 an ounce. Lower interest rate expectations have reduced returns on assets such as bonds, prompting investors to turn to commodities like gold and silver for both returns and portfolio diversification.
Analysts currently expect the US to cut interest rates twice in 2026. Demand has also been supported by central banks worldwide increasing their gold reserves to counter economic uncertainty, reduce reliance on the US dollar and diversify holdings, according to Goldman Sachs, which expects the trend to continue into 2026.
Chartered financial planner Anita Wright of Ribble Wealth Management said gold’s steady rise reflects its role as a hedge against inflation and economic instability. She added that a weaker US dollar has also supported higher gold prices by making the metal more affordable for overseas buyers.
Silver has also recorded a standout year, reaching a record US$69.44 an ounce on Monday. So far in 2025, silver is up 138 per cent, while platinum has reached a 17-year high, outperforming gold due to strong demand and supply constraints. Unlike gold, these metals benefit from widespread use in industrial manufacturing.
Meanwhile, oil prices also rose on Monday after the United States ordered a blockade of sanctioned oil tankers entering and leaving Venezuela. Brent crude increased by US$1.31 to US$61.78 a barrel, while US crude rose by US$1.25 to US$57.77. However, both benchmarks are expected to end 2025 below their starting levels for the year.
