Gold and Silver Surge to New Records Amid Dollar Weakness
Precious metals surged to fresh record levels toward the end of the year, extending one of the strongest rallies seen in decades as investors sought safety amid geopolitical instability, a weakening US dollar, and thin holiday trading conditions.
Gold, silver, and platinum all reached new highs, underscoring a broad-based move into hard assets as global risks intensified.
Key takeaways
- Gold, silver, and platinum hit new all-time highs during year-end trading
- Geopolitical tensions boosted demand for safe-haven assets
- Thin liquidity amplified price movements across precious metals
- A weaker US dollar provided additional support
- Gold and silver are on track for their strongest yearly gains since the late 1970s
Gold prices briefly climbed above $4,530 per ounce, while silver jumped past $77 marking its fifth consecutive session of gains. The sharp moves were amplified by reduced liquidity typical of year-end markets, where smaller flows can trigger outsized price swings. According to Daniel Takieddine, rising geopolitical tensions have continued to strengthen demand for traditional safe-haven assets, a trend that has been further exaggerated by lighter trading volumes.
Geopolitical developments have played a central role in reinforcing the metals’ appeal. Heightened tensions involving Venezuela, including US actions targeting oil shipments and increased pressure on the government of Nicolás Maduro, have added to investor unease. At the same time, US military operations against Islamic State targets in Nigeria have contributed to broader risk aversion, encouraging flows into gold and silver as protective assets.
Dollar weakness and policy shifts fuel the rally
Currency dynamics have also provided strong support. The Bloomberg Dollar Spot Index recorded its steepest weekly decline since mid-year, making dollar-priced commodities more attractive to international buyers. Historically, periods of dollar weakness tend to coincide with stronger precious metal prices, a relationship that has again come into focus during this rally.
The scale of the move is striking. Gold has risen by roughly 70% this year, while silver has gained more than 150%, putting both metals on track for their strongest annual performances since the late 1970s. Central-bank buying, steady inflows into exchange-traded funds, and a shift in US monetary policy have all helped fuel the advance. Multiple interest-rate cuts by the Federal Reserve have reduced the opportunity cost of holding non-yielding assets, with markets increasingly pricing in further easing in 2026.
Investor behavior earlier in the year also contributed to the momentum. Trade policy uncertainty under Donald Trump, combined with concerns over the independence of the Federal Reserve, strengthened the so-called debasement trade. As debt levels climbed and confidence in sovereign currencies weakened, capital flowed out of bonds and into tangible stores of value.
Gold’s durability has been further demonstrated by its ability to rebound quickly from prior pullbacks. After retreating from a
previous peak in October amid concerns that prices had run too far, the metal recovered swiftly as fresh buying emerged. Exchange-traded funds have been a major driver of the latest leg higher, with holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, rising by more than 20% this year.
As the year draws to a close, the combination of geopolitical risk, accommodative monetary policy, and persistent demand for safe assets continues to shape a powerful narrative for precious metals, one that few investors appear ready to abandon.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
