The price of gold hit another record high, trading above $4,400 an ounce for the first time. The price of the precious metal rose on expectations that the US central bank will cut interest rates further next year, analysts said.
Gold started the year at $2,600 an ounce, but geopolitical tensions, Trump’s tariffs and expectations of interest rate cuts have boosted investor demand for safe-haven assets like gold and other commodities.
Prices of other precious metals, such as silver and platinum, also rose.
The price of gold is up more than 68 percent this year, the biggest increase since 1979, according to Adrian Ash, BullionVault’s director of bullion market research.
Another factor contributing to demand is that central banks around the world are expanding their own physical gold holdings as a way to counter economic turbulence, reduce dependence on the US dollar and diversify their own portfolios.
The steady rise in the price of gold throughout the year could be due to it being seen as a way for traders to hedge against the threat of inflation and economic turmoil.
A weaker US dollar also contributed to the rise in gold prices as it made the metal cheaper for foreign buyers.
Other precious metals also had record years. The price of silver reached a record high of $69.44 per ounce on Monday.
According to analysts, the price of silver in 2025 is up 138 percent from the start of the year, and platinum is at a 17-year high, significantly outperforming gold, driven by strong supply constraints.
