Gold prices reached another record, trading above $4,400 (£3,275) per ounce for the first time on Monday, peaking at $4,420 before pulling back slightly.
The precious metal rose on expectations of further US Federal Reserve interest rate cuts next year, driving demand for safe-haven assets.
68% annual gain
Gold began 2025 at $2,600 per ounce, marking its highest yearly increase since 1979 at over 68%, per BullionVault research director Adrian Ash.
Slow-burning trends in interest rates, wars, and trade tensions propelled the rally, with Trump policies triggering trade wars, Fed attacks, and geopolitical provocations.
Rate cuts and safe havens
Lower rate expectations reduce bond yields, pushing investors toward gold, silver, and commodities for returns and diversification. Analysts anticipate two US rate cuts in 2026.
Central banks globally boosted physical gold holdings to counter turbulence, reduce dollar reliance, and diversify, a trend Goldman Sachs predicts continues into 2026.
Inflation hedge appeal
Gold shields against inflation and economic turmoil as financial asset confidence wanes, noted chartered planner Anita Wright of Ribble Wealth Management. A weaker dollar made gold cheaper for foreign buyers.
Silver hit $69.44 per ounce record, up 138% year-to-date; platinum reached 17-year high on industrial demand and supply issues.
Oil also rose Monday after US tanker blockade, with Brent at $60.99 and WTI at $57.40, though both end 2025 lower than start.
Source: BBC
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