Gold Prices Reach New Record High

SadaNews - Gold reached a new record high on Tuesday, marking the fiftieth day this year that it has broken records, amid investors' anticipation of escalating geopolitical tensions and the prospect of further cuts to U.S. interest rates. Silver also rose to a record level.

Bullion surpassed $4,480 an ounce for the first time, after gaining 2.4% in the previous session, the largest single-day rise in over a month.

Traders are betting that the Federal Reserve will lower borrowing costs again next year, which will create a low-interest environment that benefits non-yielding precious metals.

Gold's appeal as a safe haven was bolstered last week by escalating geopolitical tensions, particularly in Venezuela, where the United States has imposed a blockade on oil tankers as part of its efforts to increase pressure on President Nicolás Maduro's government.

Gold has gained 70% this year in a sharp upward trend driven by increased purchases by central banks and inflows into bullion-backed exchange-traded funds.

The metal is on track for its best annual performance since 1979. According to data from the "World Gold Council," total holdings in gold-backed exchange-traded funds have increased every month this year except May.

Rise Driven by Politics and Investment Flows

Aggressive moves by U.S. President Donald Trump to reshape global trade, along with his threats to the independence of the Federal Reserve, have fueled the upward trend earlier this year.

Investors have also played a crucial role, driven partially by what is known as "currency devaluation trading," which involves moving away from sovereign bonds and currencies denominated in them due to concerns about their value eroding over time due to rising debt levels.

Gold quickly recovered after pulling back from its previous peak of $4,381 in October, when the market considered the upward trend exaggerated. The precious metal is now in a position to continue these gains into next year.

Goldman Sachs and several other banks expect prices to keep rising in 2026, having issued a base scenario at $4,900 an ounce with upward risks.

Silver Prices Hit Record Levels

Silver also set a new record, rising by up to 1% to reach $69.7060. The ascent of the white metal by around 140% this year has been even more striking than gold, recently supported by speculative inflows and ongoing supply disruptions across key trading hubs following a historic sell-off pressure in October.

The total trading volume of silver futures in Shanghai earlier this month rose to levels close to those recorded during the crisis two months ago.

Spot gold prices rose 0.8% to $4,479.25 an ounce by 9:20 AM in Singapore. Silver increased by 0.5% to $69.39. Platinum rose by 0.7%, while palladium increased by 0.2%, whereas the Bloomberg Dollar Spot Index fell by 0.1%.