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Gold surged to an unprecedented milestone on Wednesday, breaking above $4,500 an ounce for the first time, while silver and platinum also posted fresh record highs, underscoring an exceptional rally across the precious metals complex driven by safe-haven demand, speculative inflows, and expectations of further U.S. interest-rate cuts next year.
Spot gold rose 0.2% to $4,494.49 an ounce by 12:20 GMT, after touching an intraday record of $4,525.19. U.S. gold futures for February delivery climbed 0.4% to $4,523.10, tracking strong momentum in the physical market.
Silver was a standout performer, hitting an all-time high of $72.70 an ounce before easing slightly to trade 1.3% higher at $72.32. Platinum also surged to a new record of $2,377.50, later paring gains to stand 1.6% higher at $2,312.70. Palladium bucked the broader trend, slipping 1.5% to $1,830.37 after touching its highest level in three years earlier in the session.
Momentum, fundamentals and dollar weakness drive gold
The rally in gold continues to be underpinned by a powerful combination of technical momentum and supportive macro fundamentals. According to Fawad Razaqzada, market analyst at City Index and FOREX.com, the absence of clear bearish catalysts has left prices free to extend gains.
“The lack of any bearish factors and strong momentum, all backed by solid fundamentals — including continued central bank buying, a falling U.S. dollar and some level of haven demand — is supporting gold,” Razaqzada said. He added that strength in base metals such as copper has also helped lift sentiment across the broader metals complex.
Gold has now gained more than 70% year-to-date, marking its strongest annual performance since 1979, as investors seek protection from geopolitical tensions, currency debasement risks, and shifting monetary policy expectations.
Fed policy outlook fuels non-yielding assets
Expectations of further easing by the U.S. Federal Reserve remain a key driver of the rally. Non-yielding assets such as gold tend to benefit in a low-interest-rate environment, and markets are currently pricing in two U.S. rate cuts next year.
Political signals have added to speculation around a more accommodative policy stance. U.S. President Donald Trump said on Tuesday that he wants the next Fed chair to lower interest rates if financial markets are performing well, reinforcing expectations that monetary policy could remain supportive of risk and hard assets alike.
Silver, platinum surge on supply and structural demand
Silver has significantly outperformed gold in percentage terms, rising more than 150% this year, fueled by strong investment demand, its designation as a U.S. critical mineral, and expanding industrial usage. Tight physical availability has amplified price moves as speculative interest intensified.
Platinum and palladium — primarily used in automotive catalytic converters — have also seen extraordinary gains, with platinum up about 160% and palladium more than 100% year-to-date. Analysts cite constrained mine supply, tariff uncertainty, and a rotation of investment flows from gold into other precious metals as key supporting factors.
Outlook remains bullish
Despite the scale of the rally, some analysts see limited downside risks in the near term. Societe Generale noted that a meaningful correction in gold prices would likely require a slowdown in physical buying, particularly from emerging-market central banks.
With monetary easing expectations, strong central bank demand, and ongoing geopolitical uncertainty, precious metals appear poised to remain a focal point for global investors well into the coming year.
