Gold prices break their record for the 50th time in 2025

 

Gold 

Gold prices break their record for the 50th time in 2025

Gold hit a new record high, its 50th since the start of 2025, driven by escalating global geopolitical tensions and growing bets that the US Federal Reserve will continue to cut interest rates next year, a scenario that boosts demand for non-yielding assets such as precious metals.

Gold prices rose as much as 1.2% in spot trading, nearing $4,500 an ounce, extending gains after posting their biggest daily jump in over a month. Silver also followed suit, hitting a new record high, 
Market participants are betting that the Federal Reserve, which has already implemented three consecutive interest rate cuts, will move towards another reduction in borrowing costs during 2026, which is favorable for gold and other precious metals.

Geopolitical tensions bring gold back into the spotlight
Over the past week, gold's appeal as a safe haven has been boosted by escalating geopolitical tensions, particularly in Venezuela.
The United States has intercepted oil tankers as part of its efforts to increase pressure on President Nicolas Maduro's government.

Best annual performance since 1979

Gold has risen by about 70% since the beginning of the year and is on track for its best annual performance since 1979. This strong rally is based on intensive buying by central banks, as well as strong inflows into gold-backed exchange-traded funds (ETFs).

According to data from the World Gold Council, holdings of gold-backed funds increased in all months of 2025 except for May, a clear indication of continued investment demand.
The aggressive trade policies pursued by US President Donald Trump to reshape global trade, along with his repeated threats to the independence of the Federal Reserve, also contributed to the upward trend earlier in the year.
Investors are moving away from sovereign bonds and related currencies, amid fears that their real value is being eroded by ballooning government debt.

Gold funds are leading the latest wave

Heavy buying by exchange-traded funds (ETFs) was a key factor in the recent surge.
Holdings in State Street's SPDR Gold Trust, the world's largest precious metals fund, rose by about 12 tons in a single day, or slightly more than 1%, the biggest daily increase since last October.

Rapid recovery and optimistic outlook for 2026

Despite gold's decline last October from its previous peak of $4,381 an ounce, when the rally was deemed excessive, the precious metal has recovered quickly and now appears to be in a position to carry these gains into next year.
Major investment banks, including Goldman Sachs, expect the rise to continue in 2026, with a baseline scenario indicating prices reaching $4,900 an ounce, with additional upside risks.

Silver outperforms... with a rise exceeding 140%

Silver, for its part, has seen even more remarkable gains, rising by approximately 140% since the beginning of the year, outperforming gold. Silver prices climbed by as much as 1.4%, approaching the $70 per ounce mark.
This rise was supported by strong speculative flows, in addition to continued supply bottlenecks following a historic "sell pressure" wave in October, which accelerated the rise.

Despite significant inflows into London's coffers since then, a large portion of the world's available silver remains stored in New York, awaiting the results of a US Department of Commerce investigation into whether imports of vital metals pose a threat to national security, which could open the door to tariffs or trade restrictions.

In contrast, silver stocks in warehouses linked to the Shanghai Futures Exchange hit their lowest level since 2015 last month.
Technically, gold's Relative Strength Index (RSI) showed a reading of 80.3, indicating that the metal has entered overbought territory, while silver reached 79.1, a high level that has persisted for about two weeks. Readings above 70 typically suggest the possibility of a price correction.

Metals performance and the dollar

By 2:11 p.m. Singapore time, spot gold had risen 0.7% to $4,473 an ounce, after earlier hitting a record high of $4,497.74.
Silver rose 0.2% to $69.20, while platinum climbed 1.3% and palladium gained 1%. In contrast, the Bloomberg Dollar Spot Index fell 0.2%.