Gold pushed through $4,000 an ounce to hit a record high on Wednesday, fueled by investors seeking refuge from mounting economic and geopolitical uncertainty, along with firm expectations of further interest rate cuts by the U.S. Federal Reserve.
The metal’s record-breaking rally has made it one of the best-performing assets of 2025, up 54% year-to-date after gaining 27% in 2024. Spot gold was last trading up 1.58% at $4,047.28 per ounce, with U.S. gold futures for December delivery also gaining 1.58% to $4,067.70.
Gold has surpassed advances in global equity markets and Bitcoin while outpacing losses for the dollar and crude oil.
The safe-haven appeal of gold stems from a perfect storm of factors. Mounting global crises, including the Middle East conflict, the war in Ukraine, and political turmoil in France and Japan, are stoking demand. Domestically, the U.S. government shutdown, now in its eighth day, is delaying the release of key economic data, forcing investors to lean on expectations for Fed rate cuts. Markets are currently pricing in a 25-basis-point reduction at the upcoming Fed meeting, with a similar cut anticipated in December.
Beyond the headlines, the rally is fortified by strong central bank buying and “hefty inflows” into gold-backed Exchange Traded Products (ETPs). Globally, these inflows reached a total of $64 billion year-to-date, with a record $17.3 billion flowing in during September alone. Analysts also noted that a “fear of missing out” is compounding the upward momentum.
Matthew Piggott, director of gold and silver at Metals Focus, commented that gold’s strength “reflects an extremely positive macroeconomic and geopolitical background for safe-haven assets.” He sees no immediate catalyst for a significant drop and expects gold to continue pushing up throughout the year, attempting a challenge of $5,000/oz.
Silver joined the rally, gaining 3.24% to $49.37 per ounce, sitting just below its all-time high of $49.51.
The metal is up more than 69% this year, benefiting from the same drivers as gold, in addition to tightness in the spot market. Suki Cooper, Global Head, Commodities Research at Standard Chartered Bank, noted that the silver market is tightening due to rising lease rates, record-high Comex stocks, and seasonal demand in India. HSBC has since raised its average silver price forecast for 2026 to $44.50.
The strong momentum also lifted other precious metals: platinum gained 2.10% to $1,652.20, and palladium climbed 7.35% to $1,435.53. However, on a technical note, gold’s Relative Strength Index (RSI) stands at 88, which suggests the metal is currently overbought.
