Whats Driving Gold and Silver to Fresh Record Highs Right Now?
Source: Kapitales Research
Highlights:
Gold and silver hit record highs, with gold jumping up to 2.1% above its previous peak and silver surging as much as 3.4%, marking their strongest annual performance since 1979.
At the time of writing, markets were pricing in two US interest rate cuts in 2026, boosting demand for non-yielding assets like precious metals.
Rising geopolitical tensions, including pressure on Venezuela and fresh conflict risks linked to Russia and Ukraine, strengthened gold and silver’s safe-haven appeal.
Precious Metals Shine as Uncertainty Builds
Gold and silver have climbed to record levels, posting their best yearly gains in over 40 years as investors flock to safe-haven assets amid escalating geopolitical tensions and rising expectations of lower US interest rates. The surge has firmly established precious metals as top performers in global markets this year. At the time of writing, gold climbed as much as 2.1%, breaking above its previous record to trade above US$4,381 an ounce, while silver jumped up to 3.4%, moving closer to the US$70 an ounce mark. The gains cap a blistering run that puts both metals on track for their best yearly performance since 1979.
Rate-Cut Bets Add Fuel to the Rally
A major driver behind the surge is mounting confidence that the Federal Reserve will ease monetary policy further. Traders are increasingly pricing in two interest rate cuts in 2026, a view reinforced by calls from Donald Trump for looser monetary conditions. Lower interest rates typically boost gold and silver, as these assets do not offer yields and become more attractive when borrowing costs fall. At the time of writing, this expectation has continued to push investors toward bullion as a hedge against economic and policy uncertainty.
Geopolitical Tensions Drive Safe-Haven Demand
Escalating global tensions are also strengthening demand for precious metals. The United States has intensified its oil blockade against Venezuela, increasing pressure on President Nicolás Maduro’s government. Meanwhile, Ukraine has reportedly targeted an oil tanker linked to Russia’s so-called shadow fleet in the Mediterranean—an unprecedented move that has rattled energy and financial markets. At the time of writing, these developments have heightened fears of broader disruptions, reinforcing gold and silver’s role as traditional safe-haven assets.
Strong Year, Stronger Momentum
Gold is now up more than 65% this year, supported by heavy central bank buying and strong inflows into bullion-backed exchange-traded funds. Spot gold rose to US$4,429.99 an ounce, while silver traded near US$68.96 an ounce. With momentum firmly on their side, precious metals are ending the year in historic fashion.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Whats Driving Gold and Silver to Fresh Record Highs Right Now?
Highlights:
Precious Metals Shine as Uncertainty Builds
Gold and silver have climbed to record levels, posting their best yearly gains in over 40 years as investors flock to safe-haven assets amid escalating geopolitical tensions and rising expectations of lower US interest rates. The surge has firmly established precious metals as top performers in global markets this year. At the time of writing, gold climbed as much as 2.1%, breaking above its previous record to trade above US$4,381 an ounce, while silver jumped up to 3.4%, moving closer to the US$70 an ounce mark. The gains cap a blistering run that puts both metals on track for their best yearly performance since 1979.
Rate-Cut Bets Add Fuel to the Rally
A major driver behind the surge is mounting confidence that the Federal Reserve will ease monetary policy further. Traders are increasingly pricing in two interest rate cuts in 2026, a view reinforced by calls from Donald Trump for looser monetary conditions. Lower interest rates typically boost gold and silver, as these assets do not offer yields and become more attractive when borrowing costs fall. At the time of writing, this expectation has continued to push investors toward bullion as a hedge against economic and policy uncertainty.
Geopolitical Tensions Drive Safe-Haven Demand
Escalating global tensions are also strengthening demand for precious metals. The United States has intensified its oil blockade against Venezuela, increasing pressure on President Nicolás Maduro’s government. Meanwhile, Ukraine has reportedly targeted an oil tanker linked to Russia’s so-called shadow fleet in the Mediterranean—an unprecedented move that has rattled energy and financial markets. At the time of writing, these developments have heightened fears of broader disruptions, reinforcing gold and silver’s role as traditional safe-haven assets.
Strong Year, Stronger Momentum
Gold is now up more than 65% this year, supported by heavy central bank buying and strong inflows into bullion-backed exchange-traded funds. Spot gold rose to US$4,429.99 an ounce, while silver traded near US$68.96 an ounce. With momentum firmly on their side, precious metals are ending the year in historic fashion.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au