Gold has risen to a historic high: escalating geopolitical tensions and expectations of further interest rate cuts in the U.S. have given momentum to the metal, reports Bloomberg.
Quotes briefly rose by more than 1.5%, exceeding the previous record of $4,381 per ounce set in October.
February futures hit a record of $4,442, while the spot price marked a historic high of $4,409.
Traders are pricing in two rate cuts by the Fed in 2026 following a series of economic data last week. Trump is also calling for a more accommodative monetary policy. 'This supports low-yielding metals.
Increased geopolitical tensions have also enhanced the status of gold and silver as a 'safe haven.' The U.S. has tightened the oil blockade against Venezuela, increasing pressure on Nicolás Maduro's government, while Ukraine attacked a tanker from the Russian shadow fleet in the Mediterranean for the first time.
Both precious metals are on track for the strongest annual gain since 1979.
Gold has increased by about two-thirds since the beginning of the year, driven by increased purchases from central banks and inflows into gold-backed exchange-traded funds (ETFs). Aggressive steps by Trump to reshape global trade and his pressure on the Fed contributed to the rally earlier this year.
Investors have also played a key role in the rise of gold, partly due to the so-called 'devaluation bet' — moving away from sovereign bonds and currencies denominated in them due to rising debt levels.
Other precious metals also surged sharply. Silver rose by 3.4%, reaching a record just below $70 an ounce, while palladium jumped by 5%. Platinum has risen for the eighth consecutive session and traded above $2,000 for the first time.
