International gold prices continue to hit historical highs, supported by multiple favorable factors for sustained mid-to-long-term upward movement.
On December 24, market data showed that international gold prices maintained a strong upward trend, continuing to rise based on the historical high set on the previous trading day. During the morning session, spot gold even broke through the $4500/ounce mark for the first time, reaching a peak of $4518.34/ounce during the day.
At the same time, domestic gold jewelry prices also rose in tandem, with brands like Chow Tai Fook quoting pure gold jewelry at 1410 yuan per gram. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, pointed out that since 2025, gold prices have refreshed historical highs over 50 times, and the core factors driving gold prices upward have not yet faded, hence "theoretically, the mid-to-long-term outlook for gold remains optimistic."
From the general market analysis, the current rise in gold prices is a result of multiple factors working together. On one hand, global macroeconomic easing expectations are heating up, with the U.S. unemployment rate rising to 4.6% in November, a four-year high, and core CPI data falling short of market expectations. Employment and inflation are cooling simultaneously, enhancing expectations for Federal Reserve interest rate cuts, while a weaker dollar lowers the cost of holding gold, providing strong support for gold prices.
On the other hand, ongoing global geopolitical turmoil has significantly strengthened gold's safe-haven attributes. Meanwhile, global central banks are continuing to buy gold in large quantities, with gold demand reaching a historical peak in the third quarter of 2025. Coupled with market concerns over the creditworthiness of the dollar and risks associated with U.S. Treasury bonds, gold has become a core asset for global investors.
Additionally, changes in the supply and demand structure of the gold market have further propelled gold prices higher. Currently, investment demand for gold has replaced jewelry demand as the core driving force, leading to record inflows into global gold ETFs; while the increase in gold supply is limited, the persistent imbalance in supply and demand continues to support the upward movement of gold prices.
It is noteworthy that, with gold leading the rally, other precious metals such as silver, platinum, and palladium have also strengthened simultaneously, with all showing an increase of over 100% this year, and spot platinum has even surpassed the 2008 high to set a historical new high.
In summary, although gold is at a historical high, the mainstream view in the market continues to be optimistic about its value as a safe asset. The combined effects of these factors also provide a solid support foundation for future gold prices.
