Gold surged past the $4,500-an-ounce mark for the first time on Wednesday, extending a powerful rally across precious metals as investors sought safe havens amid expectations that U.S. interest rates will decline further next year.
Spot gold rose 0.1% to $4,492.51 an ounce by 0359 GMT after touching a record high of $4,525.19 earlier in the session. U.S. gold futures for February delivery climbed 0.3% to a record $4,520.60.
Silver also scaled fresh highs, gaining 1.2% to $72.27 an ounce after reaching an all-time peak of $72.70 earlier in the day. Platinum jumped 3.3% to $2,351.05, having touched a historic high of $2,377.50, while palladium rose nearly 2% to $1,897.11, its highest level in three years.
Analysts said demand for precious metals has been fueled by a combination of safe-haven buying, expectations of lower U.S. interest rates and geopolitical and structural shifts in global markets.
Thin year-end liquidity has amplified recent price moves, but the trend is likely to persist, Spivak said, adding that gold could target $5,000 over the next six to twelve months, while silver may advance toward $80 as markets respond to key psychological levels.
Gold has surged more than 70% so far this year, marking its strongest annual performance since 1979. The rally has been driven by strong central bank buying, expectations of U.S. rate cuts, de-dollarisation trends, exchange-traded fund inflows and heightened geopolitical risks. Markets are currently pricing in two U.S. rate cuts next year.
Silver has climbed more than 150% over the same period, outperforming gold on robust investment demand, momentum buying and its inclusion on the U.S. critical minerals list.
Gold and silver have “been hitting the accelerator pedal this week” as investors seek stores of value amid expectations of lower U.S. rates and persistent global debt concerns, said Tim Waterer, chief market analyst at KCM Trade.
Platinum and palladium, which are primarily used in automotive catalytic converters, have also seen sharp gains this year due to tight mine supply, tariff uncertainty and a rotation of investment demand away from gold. Platinum is up about 160% year to date, while palladium has gained more than 100%.
“What we’re seeing in platinum and palladium is largely catch-up,” Spivak said, adding that the relatively thin nature of those markets leaves them vulnerable to sharp price swings, even as they track movements in gold once liquidity improves.