"Gold and silver prices rose to record highs in early trading on Monday, spurred on by a confluence of a few different political events and economic factors, including tensions over the U.S. seizing of possibly a second oil tanker from Venezuela, speculation of future Federal Reserve rate cuts, overall economy insecurity, and bets on U.S. monetary policy in 2026. In 2025, gold has surged by nearly 70%, according to Bloomberg."
"Earlier this month, the Federal Reserve cut interest rates by 25 basis points, the third cut in 2025, driving federal rates to their lowest in three years and pointing to possible further cuts in the year ahead. Historically, gold prices have risen following U.S. Federal Reserve interest rate cuts, with notable gains of 31% in 2000, 39% in 2007, and and 26% in 2019 (all within 24 months)."
Gold and silver reached multi-decade highs in early trading, with gold up about 1.9% to $4,472.20 and silver up about 3.4% toward $70 an ounce, levels not seen since 1979. Gold has risen nearly 70% year-to-date in 2025. Prices climbed amid geopolitical strains including a possible second Venezuelan oil tanker seizure, expectations for further Federal Reserve rate cuts after a 25-basis-point cut earlier in December, and broader economic uncertainty that favors safe-haven assets. Lower bond yields made gold more attractive relative to fixed income. Goldman Sachs projects gold at $4,900 by December 2026, raising debate about a $5,000 threshold.
Read at Fast Company
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