Gold and Silver Smash Records Again as Rally Gathers Momentum
Gold, silver and platinum jumped to all-time highs to extend a historic end-of-year rally for precious metals, with support from escalating geopolitical tensions and US dollar weakness.
Spot gold rose as much as 1.2% to a peak above $4,530 an ounce. Frictions in Venezuela, where the US has blockaded oil tankers and ramped up pressure on the government of Nicolás Maduro, have added to the precious metal’s haven appeal. Washington also launched a military strike against Islamic State in Nigeria in collaboration with the African nation’s government.
Spot silver for immediate delivery advanced for a fifth session, climbing as much as 5% to cross $75 an ounce. The white metal’s recent advance has been buoyed by speculative inflows and lingering supply dislocations across major trading hubs following a historic short squeeze in October.
The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was down 0.7% for the week, its biggest drop since June. A weaker dollar is generally supportive of gold and silver.
Gold has gained around 70% this year and silver more than 150%, with both metals on track for their best annual performances since 1979. The scorching rally has been supported by elevated central-bank purchases, inflows to exchange-traded funds and three successive interest-rate cuts by the US Federal Reserve. Lower borrowing costs are a tailwind for precious metals, which don’t pay interest, and traders are betting on more rate cuts in 2026.
US President Donald Trump’s aggressive moves to remake global trade, along with threats to the Fed’s independence, added momentum to the rally earlier this year. Investor demand has also been underpinned by the so-called debasement trade, as concerns over swelling debt loads drive a retreat from sovereign bonds and the currencies they are issued in.
