Gold jumped past the US$4,400-per-ounce (HK$34,241) level for the first time on Monday, riding on growing expectations of further US rate cuts and strong safe-haven demand, with silver also joining the rally to hit an all-time high.
Spot gold was up 1.4 percent at US$4,397.16 per ounce, as of 0502 GMT, after breaking the US$4,400 barrier to hit a record high of US$4,400.29 earlier in the day. Spot silver climbed 3.3 percent to hit a historic high of US$69.44.
US gold futures for February delivery rose 0.98 percent to US$4,430.30 per ounce.
Bullion has gained 67 percent so far this year, shattering multiple records and breaching the US$3,000 and US$4,000 per-ounce milestones for the first time. It is poised for its biggest annual gain since 1979.
Silver has surged 138 percent year-to-date, vastly outperforming gold, underpinned by robust investment inflows and persistent supply constraints.
“With December usually producing positive returns for gold and silver, seasonality is on their side,” said StoneX senior analyst Matt Simpson.
“Given that gold has already risen 4 percent this month and we’re nearing the end of the year, bulls may want to tread with caution as volumes are to deplete and odds of profit-taking are also likely on the rise.”
Spot gold may extend gains to US$4,427 per ounce, as it has broken a key resistance at US$4,375, Reuters technical analyst Wang Tao said.
Traditionally viewed as a safe-haven asset, gold has been supported by heightened geopolitical and trade tensions, steady central bank buying and expectations of lower interest rates next year.
A softer dollar has provided an additional tailwind by making the metal cheaper for overseas buyers.
Markets are currently pricing in two US rate cuts for next year despite the Federal Reserve signalling caution. Non-yielding assets such as gold tend to benefit in lower interest rate environments.
Simpson said two Fed rate cuts were pencilled in for 2026, with a faster US jobs slowdown and a shift to a more dovish Fed likely to add further upside to gold.
Elsewhere, platinum jumped 4.3 percent to US$2,057.15, hitting its highest in more than 17 years, while palladium climbed 4.2 percent to US$1,786.45, hitting a near three-year high.
Reuters
