Gold and silver surged to record-breaking levels on Monday as rising global tensions and expectations of easier U.S. monetary policy sent investors rushing for safety. The rally unfolded across major markets, marking the strongest annual performance for both precious metals in more than 40 years.
Gold jumped more than 1.5% to trade at $4,412.94 an ounce, blowing past its previous October record. Silver climbed as much as 3.4%, pushing toward the $70-an-ounce mark. Both metals are now on track for their best yearly gains since 1979, reflecting a powerful shift toward hard assets.
The latest surge was fueled by growing confidence that the U.S. Federal Reserve will cut interest rates twice in 2026. Lower rates typically support gold and silver because they generate no yield. U.S. President Donald Trump has also renewed calls for looser monetary policy, reinforcing expectations of a prolonged easing cycle.
Geopolitical flashpoints added fresh urgency to the rally. Washington recently tightened its oil blockade on Venezuela, escalating pressure on President Nicolás Maduro’s government. In Europe, Ukraine launched its first-ever strike on a Russian shadow fleet oil tanker in the Mediterranean Sea. In Africa, ongoing military takeovers in West Africa have heightened tensions between ECOWAS and the breakaway Alliance of Sahel States, which includes Mali, Burkina Faso, and Niger.
Market analysts say these risks are reinforcing gold’s role as a global hedge. Nicholas Frappell of ABC Refinery said geopolitical strains tied to Ukraine, Asia, and Venezuela are sustaining demand, alongside uncertainty around U.S. security policy.
Central banks and investors have become major drivers of the rally. Gold prices are up nearly 70% this year, supported by heavy central-bank buying and steady inflows into bullion-backed exchange-traded funds. Data from the World Gold Council shows ETF holdings rose in every month of the year except May, with inflows recorded for four consecutive weeks.
Investor behavior has also shifted toward what traders call the “debasement trade.” Concerns over rising debt, weaker currencies, and sovereign bond risks have pushed money into physical assets.
The rally spread across the broader precious metals market. Palladium jumped more than 4%, while platinum rose for an eighth straight session, trading above $2,000 an ounce for the first time since 2008. Platinum is up about 125% this year, driven by supply tightness in London and strong Chinese demand.
Analysts expect momentum to extend into 2026. Goldman Sachs sees gold reaching $4,900 an ounce in its base case, warning that ETF investors are increasingly competing with central banks for limited supply. Silver remains supported by speculative inflows and lingering supply disruptions following October’s historic short squeeze.
