Gold surged past $4,500 an ounce on Wednesday, hitting a record high as investors sought safe-haven assets amid expectations of lower US interest rates next year. Spot gold rose 0.1% to $4,492.51 per ounce, after earlier climbing to $4,525.19. US gold futures for February delivery reached $4,520.60, Reuters reports.
Silver and platinum also hit historic peaks. Silver gained 1.2% to $72.27 an ounce, following a high of $72.70. Platinum jumped 3.3% to $2,351.05 after reaching $2,377.50. Palladium rose nearly 2% to $1,897.11, its highest level in three years.
Ilya Spivak, head of global macro at Tastylive, expects the trend to continue, with gold targeting $5,000 and silver possibly reaching $80 over the next six to twelve months.
Gold has surged more than 70% this year, its biggest annual gain since 1979. Gains have been driven by safe-haven demand, anticipated US rate cuts, strong central bank buying, de-dollarisation and ETF inflows. Traders are pricing in two rate cuts next year.
Silver has jumped over 150%, outpacing gold due to investment demand, its listing as a US critical mineral, and momentum buying.
Platinum and palladium have also soared, primarily used in automotive catalytic converters. Tight mine supply, tariff uncertainty, and a rotation from gold investment demand pushed platinum up about 160% and palladium over 100% year to date.
Kursiv also reports that just two days ago, on December 22, gold hit $4,400 for the first time.
