Gold and silver soar record high, investors rush to safety

Gold and silver prices rose to a record high on Monday, amid strong demand for safe assets.

Spot gold climbed 1.2% to a record $4,391.92 per ounce, breaking multiple milestones in 2025, breaking through the $3,000 to $4,000 per-ounce levels, showing strongest annual performance since 1979.

Silver outperformed gold by a wide margin, jumping 2.7% to $69.23 per ounce by early Asian trading. It has risen 138% year-to-date, supported by heavy investor inflows and ongoing supply constraints that have led to this increase.

Analysts said seasonal trends have also favoured precious metals. December has historically proven positive for both gold and silver.

Moreover the factors that have further acted in favour of gold and silver are increase in geopolitical and trade tensions, continuous buying by central banks and expectations that borrowing costs will go down in the coming years. A weaker US dollar has added further support by making the metals cheaper for overseas buyers.

Markets are currently pricing in two US rate cuts next year, despite signals, to remain careful, from the Federal Reserve. Non-yielding assets like gold typically benefit in lower interest rate environments.

Apart from gold and silver, platinum surged 4.1% to $2,054.25, its highest level in more than 17 years, while palladium rose 4% to $1,781.32, its highest in the last three years