By Gold surged past the $4,000-an-ounce mark for the first time on Wednesday, extending a record-breaking rally fueled by geopolitical and economic uncertainty, as well as expectations of imminent U.S. interest rate cuts that sent investors flocking to safe-haven assets.
Silver also climbed to a record high on Wednesday, latching on to gold’s record streak as investors flocked to the metal. Spot gold was up 1.8% at $4,053.13 per ounce by 12:17 p.m. ET (1617 GMT), while U.S. gold futures for December delivery gained 1.8% to $4,075.00. Silver gained 3.4% to $49.42 per ounce, after hitting its all-time high of $49.57.
“Gold’s strength reflects an extremely positive macroeconomic and geopolitical background for safe-haven assets, coupled with concerns over other traditional safe havens,” said Matthew Piggott, director of gold and silver at Metals Focus.
Gold bars are displayed to be photographed at bullion house in Mumbai December 3, 2009.
Gold, traditionally seen as a store of value during times of instability, has surged 52% so far this year after gaining 27% in 2024. It ranks among 2025’s best-performing assets, outpacing global equity markets and bitcoin, while the U.S. dollar and crude oil have both posted losses.
“The silver market continues to tighten, with rising lease rates, as Comex stocks scale record highs and amid India’s seasonal demand strength. The recent rally has been supported by hefty ETP inflows,” said Suki Cooper, Global Head, Commodities Research at Standard Chartered Bank.
The metals’ rally has been propelled by a combination of factors, including expectations of U.S. interest rate cuts, mounting political and economic uncertainty, strong central bank buying, hefty inflows into ETFs and a weakening dollar.
“With these factors persisting into 2026, we fail to see any catalyst for gold to meaningfully retrace at present. Therefore, we expect gold to continue to push up throughout the year to attempt a challenge of $5,000 per ounce level,” Piggott added.
The U.S. 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 upcoming Federal Reserve rate cuts.
Markets are currently pricing in a 25-basis-point rate cut at the Fed’s next meeting, with another similar reduction expected in December.
Geopolitical crises — including the conflicts in the Middle East and Ukraine — have bolstered demand for bullion, while political instability in France and Japan has further fueled the flight to gold.
Gold broke above $4,000 an ounce for the first time as investors piled into the safe haven, making it one of the best-performing assets of 2025.
Globally, inflows into gold-backed exchange-traded funds (ETFs) have reached $64 billion year-to-date, according to the World Gold. Council, with a record $17.3 billion flowing in during September alone. Analysts said a growing “fear of missing out” is also amplifying the rally.
On a technical basis, gold’s Relative Strength Index (RSI) stands at 88, indicating the metal is overbought.
Silver has risen 71% so far this year, supported by the same safe-haven demand driving gold’s surge and by tightening conditions in the spot market. HSBC on Wednesday raised its average silver price forecasts to $38.56 per ounce for 2025 and $44.50 for 2026, citing expectations for high gold prices, renewed investor appetite, and continued volatility.
The momentum seeped into other precious metals as well, with platinum gaining 2.5% to $1,659.04, while palladium climbed 7.3% to $1,435.18, to its highest level since June 2023.
