Gold and silver has hit record highs amid rising geopolitical tensions and expectations of the US rate cuts.
This surge contributed to their strongest annual performance in more than four decades as investors sought safe-haven assets amid economic uncertainty.
As per Reuters, gold surpassed $4,400 per ounce for the first time while silver climbed to a new record of $69.44 per ounce.
Spot gold rose 2% to $4,426.66 per ounce and US gold futures for February delivery increased 1.5% to $4,451.60 per ounce.
Silver’s price has increased 139% so far this year due to a shortage in supply, higher industrial demand, and strong investor interest.
"Lower rates are supporting the demand for real assets like gold and silver. But we also have copper at a record high, indicating a desire by investors to hold exposure to broad commodities, likely due to expectations that inflation could stay higher for longer," said UBS analyst Giovanni Staunovo.
The recent rise in gold and silver prices is fuelled by traders expecting the US Federal Reserve to cut interest rates twice in 2026 and lower rates make precious metals more appealing since they don't pay interest.
Reports further hinted gold prices to rise more next year, potentially reaching $4,500 per ounce.
Elsewhere, platinum surged 5.4% to $2,079.25, its highest level in over 17 years and palladium rose 2.7% to $1,759.75.
