Gold climbed above $4,500 an ounce for the first time in history on Wednesday, driven by escalating geopolitical tensions in Venezuela and expectations of further U.S. interest rate cuts.
Silver and platinum also advanced to record levels, reflecting a broad rally across precious metals.
Spot gold rose nearly 1% in early trading, extending a three-day winning streak, before easing to trade little changed.
The surge reflects investors’ flight to safe-haven assets amid U.S. sanctions on Venezuelan oil tankers and growing bets that the Federal Reserve will lower borrowing costs in 2026.
Best annual performance since 1979
Gold has gained nearly 70% this year, while silver has soared almost 150%, both on track for their strongest annual performance since 1979.
The rally has been supported by elevated central-bank purchases and steady inflows into exchange-traded funds (ETFs).
According to the World Gold Council, holdings in gold-backed ETFs have increased every month this year except May. State Street Corp.’s SPDR Gold Trust, the largest precious-metals ETF, has expanded by more than a fifth in 2025.
Gold rebounded quickly after retreating from its October peak of $4,381 an ounce, signaling resilience in investor appetite. Goldman Sachs projects prices could reach $4,900 an ounce in 2026, with risks skewed to the upside.
Silver’s spectacular rally
Silver broke through $70 an ounce for the first time on Tuesday, climbing as much as 1.8% to a record $72.70.
The metal’s rally has outpaced gold, fueled by speculative inflows and lingering supply disruptions following a historic short squeeze in October.
Despite significant inflows into London vaults, much of the world’s silver remains concentrated in New York as traders await the outcome of a U.S. Commerce Department probe into critical minerals imports. The investigation could lead to tariffs or restrictions.
Platinum extends winning streak
Platinum also surged, jumping 4% to surpass $2,300 an ounce for the first time since Bloomberg began tracking data in 1987.
The metal, widely used in automotive and jewelry industries, has risen for 10 consecutive sessions, its longest winning streak since 2017.
Platinum has gained about 150% this year, the largest annual increase on record, amid tight supplies and disruptions in South Africa, a major producer. Analysts warn the market is heading for a third consecutive annual deficit.
More insight
Gold’s 14-day relative strength index (RSI) climbed to 81, while silver’s RSI hovered near 82 — both well above the threshold of 70 that typically signals overbought conditions.
At 12:11 p.m. in London, spot gold edged up 0.2% to $4,494.75 an ounce, after hitting a record $4,525.77 earlier. Silver traded at $72.33, while platinum rose 1.2%. Palladium, however, gave up earlier gains.
What you should know
Earlier in December, a new outlook released by the World Gold Council projected gold to maintain its upward trajectory, surging by 15-30% in 2026.
The precious metal delivered a standout performance in 2025, recording more than 50 all-time highs and generating returns of over 60%.
This surge was driven by heightened geopolitical and economic uncertainty, a weakening US dollar, and strong positive price momentum.
The report noted that both institutional and retail investors, alongside central banks, boosted their exposure to gold as they sought diversification and stability.
