Gold surged past the $4,000 an ounce level for the first time yesterday, building on a record-breaking rally as broader geopolitical and economic uncertainty, as well as expectations of US interest rate cuts, sent investors flocking to the safe-haven asset.
Silver also climbed to a record high, latching on to gold’s record streak as investors flocked to the metal.
Spot gold was up 1.9 per cent at $4,057.12 per ounce. US gold futures for December delivery gained 1.9pc to $4,079.40. Silver gained 3.2pc to $49.35 per ounce, after hitting its all-time high of $49.57.
Gold, traditionally seen as a store of value during times of instability, is up 52pc year-to-date, after gaining 27pc in 2024. It is one of the best-performing assets of 2025, outpacing advances in global equity markets and bitcoin and losses for the US dollar and crude oil.
Silver was up 71pc so far this year, benefiting from the same factors driving gold’s rally as well as tightness in the spot market.
The metals’ rally has been propelled by a combination of factors, including expectations of US interest rate cuts, mounting political and economic uncertainty, strong central bank buying, hefty inflows into ETFs and a weakening dollar.
The US government shutdown entered its eighth day on Wednesday, delaying the release of key economic data and forcing investors to rely on non-government sources to assess the timing and scope of Fed rate cuts.
Markets are pricing in a 25-basis-point rate cut at the Fed’s upcoming meeting, with a similar reduction expected in December.
Global crises, such as the Middle East conflict and the war in Ukraine, have stoked demand for bullion, while political turmoil in France and Japan added to the flight to gold.
Globally, inflows into gold ETFs hit $64 billion year-to-date, according to data from the World Gold Council, with a record $17.3bn in September alone.
A “fear of missing out” is also boosting the rally, analysts said.
On a technical basis, gold’s Relative Strength Index (RSI) stands at 88, indicating the metal is overbought.
HSBC yesterday raised its average silver price forecasts for 2025 to $38.56 per ounce and for 2026 to $44.50, citing expectations for high gold prices, renewed investor demand and anticipated volatile trading.
The momentum seeped into other precious metals as well, with platinum gaining 2.8pc to $1,660.78, while palladium climbed 7.2pc to $1,434.25, its highest level since June 2023.
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