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Gold and silver surged to new all-time highs in Asian trading on Monday, extending a powerful multi-week rally as investors piled into safe-haven assets amid rising geopolitical tensions in the Middle East and fresh uncertainty tied to U.S.-Venezuela developments.
Spot gold climbed 1.4% to a record $4,403.60 an ounce, pushing beyond its prior October peak, while February gold futures rose more than 1% to a session high of $4,442.55/oz. Silver led the move across the precious-metals complex, with spot prices jumping more than 3% to a fresh record $69.4545/oz, and silver futures touching $69.515/oz.
The advance was broad-based. Platinum rallied over 2% and crossed $2,000/oz for the first time since 2008, while palladium surged nearly 5% to around $1,799.20/oz, hovering near a three-year high. Traders pointed to a mix of easing-rate expectations, improving demand assumptions, and concerns about tighter supplies into the coming year as key drivers supporting the sector.
The rally also reflects a longer-running shift toward physical assets as global growth worries linger and markets increasingly price in further U.S. interest-rate cuts in 2026—conditions that typically boost non-yielding metals by lowering the opportunity cost of holding them. OCBC analysts said gold remains supported by both structural and cyclical factors, including the prospect of a Federal Reserve easing cycle, steady central-bank buying, and elevated geopolitical and policy uncertainty, framing bullion as a strategic portfolio allocation rather than merely a short-term hedge.
However, analysts cautioned that silver’s outsized gains could be vulnerable to pullbacks if industrial-demand signals soften, particularly if growth concerns begin to dominate the macro narrative.
Middle East, Venezuela Headlines Lift Safe-Haven Bid
Haven demand accelerated after weekend reports suggested Israel could brief the U.S. on plans related to potential renewed action against Iran, amid concerns over Tehran’s nuclear trajectory. The backdrop follows a series of strikes earlier in 2025 that culminated in U.S. attacks on Iranian nuclear facilities and subsequent pressure on Tehran toward a ceasefire arrangement with Israel.
Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump are expected to meet in the United States later in December, with markets watching for any indications of a tougher stance that could raise regional risk premiums.
Separately, weekend reports said the U.S. was preparing to board a third tanker off the coast of Venezuela, adding another layer of geopolitical uncertainty. Washington has intensified scrutiny of Caracas, accusing it of using oil revenue to support illicit activity and illegal immigration to the United States. Trump last week ordered a blockade of sanctioned oil tankers moving to and from Venezuela and raised the possibility of a ground campaign, keeping risk sentiment fragile.
Rate-Cut Bets and Supply Concerns Keep Metals in Focus
Gold’s resilience has been reinforced by a steady drumbeat of middling U.S. data that has strengthened expectations for easier monetary policy next year. Meanwhile, silver and other industrially linked precious metals have outperformed gold this year, helped by demand linked to electrical components and expectations of tighter supply conditions ahead.
That theme has also spilled into base metals. Copper rallied alongside precious metals as appetite for physical assets broadened, supported by expectations of improved demand in 2026 driven by stimulus measures in China and rising consumption of electrical components—particularly for artificial intelligence data centres.
On the London Metal Exchange, benchmark copper futures rose 0.8% to a record $11,977.0 a ton, while COMEX copper futures gained more than 0.5% to $5.5420 a pound, though they remained below the peaks hit in July.
