Gold jumped past the $4,500 an-ounce mark on Wednesday for the first time, driven by safe-haven demand and expectations of further U.S. rate cuts next year, while silver and platinum surged to record highs as well.
Spot gold was up 0.4% at $4,503.59 per ounce, as of 0000 GMT, after hitting a record high at $4,509.65 earlier in the day. U.S. gold futures for February delivery climbed 0.7% to a record high of $4,540.60 per ounce.
Spot silver was up 0.5% at $71.80/oz. It reached an all-time high of $71.85 earlier.
The U.S. dollar fell to a near three-month low on Tuesday against a basket of other major currencies, making dollar-priced bullion more affordable for overseas buyers.
Bullion has staged a stellar rally in 2025, climbing 72% so far and shattering multiple record highs.
Gold has benefited from multiple factors this year, including U.S. interest rate cuts and bets of further easing, international conflicts, robust central bank demand in attempted diversification from the U.S. dollar, and rising investment demand in exchange-traded funds.
Silver has gained 149% year-to-date, far outpacing gold, and breaking through the $70 mark propelled by a structural deficit, its inclusion in a U.S. critical minerals list, and strong industrial demand.
On the geopolitical front, U.S. President Donald Trump last week ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela, though unsanctioned vessels have also been targeted. Trump said he was not ruling out the possibility of waging a war on the country.
On the macroeconomic front, traders still expect two U.S. rate cuts next year.
Non-yielding assets such as gold tend to do well in a low-interest-rate environment.
Spot platinum was up 2.9% at $2,342.25 per ounce, after rising to an all-time high of $2,347.40, while palladium rose nearly 3% to $1,919.69 per ounce, a three-year peak.
