Gold, silver hit record highs amid geopolitical tensions

Gold bars

Gold and silver prices surged to fresh record highs on Friday, driven by strong safe-haven demand and growing expectations of further US interest rate cuts next year. Platinum and palladium prices also posted notable gains.

Spot gold rose 0.5% to $4,502.75 per ounce by 02:25 GMT, after touching a new record high of $4,530.60 earlier in the session.

US gold futures for February delivery climbed 0.7% to a fresh all-time high of $4,533.60 per ounce.

Spot silver jumped 3.4% to $74.35 per ounce, after reaching a record peak of $75.14 earlier in the session.

The US dollar hovered near a two-month low recorded on Wednesday.

Gold has delivered a stellar performance in 2025, rising 72% so far this year and repeatedly breaking price records.

This performance has been supported by several factors, including US interest rate cuts and expectations of further monetary easing, heightened geopolitical uncertainty, strong demand from central banks seeking to reduce exposure to US securities and the dollar, as well as increased holdings in exchange-traded funds (ETFs).

Silver prices, meanwhile, have surged 158% since the beginning of the year, significantly outperforming gold and breaking above the $75 level. Gains have been driven by inventory shortages, its inclusion on the US critical minerals list, and robust industrial demand.

On the macroeconomic front, the FedWatch tool shows that traders continue to expect two US interest rate cuts next year.

Non-yielding assets such as gold typically benefit in periods of lower interest rates.

Platinum prices jumped 8% to a record high of $2,413.62 per ounce by 03:04 GMT.

Palladium rose 4.4% to $1,757.25 per ounce.