Overview
- Spot gold rose as high as $4,435 per ounce and silver reached $69.44, setting new records to cap a powerful 2025 rally.
- Markets are pricing two Federal Reserve cuts in 2026 after softer U.S. inflation and labor data, with a weaker dollar reducing the opportunity cost of holding bullion.
- Safe-haven buying strengthened following U.S. moves targeting Venezuelan oil tankers and a Ukrainian strike on a Russian shadow-fleet tanker in the Mediterranean.
- Demand from investors and central banks remained elevated, with large inflows into gold-backed ETFs and central bank purchases on track for about 850 tons; gold is up roughly 68% this year and silver about 139%.
- Silver’s tight market after an October short squeeze and heavy Shanghai futures activity is fueling gains but heightening volatility risks in thin year-end trading, while Goldman Sachs projects gold around $4,900 by December 2026.