Gold prices smashed historical records on Monday, climbing above $4,400 per ounce for the first time, as investors flocked to safe-haven assets amid expectations of further US interest rate cuts and persistent global uncertainty.

Spot gold surged to $4,417.84 per ounce by 7:00 a.m. GMT before easing slightly to $4,412 an hour later. US gold futures for February delivery rose to $4,450, trading near $4,445 by 8:00 a.m. GMT. Meanwhile, spot silver jumped 3.3% to a record $69.44 per ounce.

The rally caps an extraordinary year for precious metals. Gold has gained around 67% year-to-date, breaking through both the $3,000 and $4,000 milestones for the first time and putting it on track for its strongest annual performance since 1979. Silver has outperformed even more dramatically, surging 138% so far this year, driven by heavy investment demand and persistent supply constraints.

Gold’s sustained ascent reflects a convergence of powerful drivers. As a traditional safe-haven asset, it has benefited from heightened geopolitical tensions, ongoing trade frictions, and continued large-scale purchases by central banks seeking to diversify reserves away from the US dollar.

The recent weakening of the dollar has added further support, making gold cheaper for non-US investors and boosting international demand. At the same time, market expectations of monetary easing have strengthened gold’s appeal.

Investors are increasingly pricing in two US Federal Reserve rate cuts next year, despite the Fed’s cautious messaging. Non-yielding assets such as gold tend to benefit in a lower-rate environment, as the opportunity cost of holding them declines. Simpson added that a sharper-than-expected slowdown in the US labor market, combined with a more accommodative Fed stance, could propel gold prices even higher in the months ahead.

The broader precious metals complex has also joined the surge. Platinum climbed 4.3% to $2,057.15, its highest level in more than 17 years, while palladium rose 4.2% to $1,786.45, reaching a near three-year high.

Looking ahead, market participants are closely watching upcoming US inflation data, Federal Reserve communications, and developments in global geopolitics. Analysts say that as long as uncertainty remains elevated and expectations of easier monetary policy persist, precious metals are likely to stay well supported—even at historically elevated price levels. (ILKHA)