Gold exceeds US$4,400 for the first time and marks its all-time high

Gold is about to close 2025 with the biggest annual rise in 45 years. Silver also hit all-time highs, driven by geopolitical tensions and expectations of further rate cuts from the Federal Reserve.

With 8 days to go until the end of the year, the precious metal reaches a new all-time high, trading at US$4,463 per ounce, with a daily rise of more than 1.7%. So far this year, the metal accumulates an advance close to 70%consolidating itself as one of the main refuges of value in a context of growing global uncertainty.

With this performance, gold is on track to close 2025 as the year of highest appreciation since 1979. Silver followed the trend and also set a record, rising 2.35% to US$69 per ounce.

The rise of both metals responds, in part, with the markets expecting that the Federal Reserve from the United States continue the rate cut cycle in 2026, which weakens the dollar and makes real assets more attractive. Also influencing are President Donald Trump’s signals in favor of a more flexible monetary policy and the increase in geopolitical tensions, particularly the conflict between the United States and Venezuela.

“Lower rates support demand for real assets such as gold and silver. But we also have copper at all-time highs, indicating investors’ desire to maintain exposure to commodities in general, probably due to expectations that inflation could remain higher for longer,” says Giovanni Staunovo of investment bank UBS.

The gold and silver rally had an immediate impact on the stock markets: the shares of the main mining companies listed in New York and London registered increases of up to 3.7% at the opening of Wall Street.

“With December typically delivering positive returns for gold and silver, seasonality is on their side,” Matt Simpson, senior analyst at StoneX, told Reuters. And he adds: “Since the gold is already up 4% this month and we are approaching the end of the year, bulls may want to act cautiously as volumes will dry up and profit-taking odds will also increase.”

Traditionally considered a safe-haven asset, gold has been supported by rising geopolitical and trade tensions, continued buying by central banks and expectations of lower interest rates next year.

The fall of the dollar has contributed to making the metal cheaper for foreign buyers.

The record reached by gold occurs in a year marked by financial volatility, the tariff war promoted by the United States and a global context of greater instability. Added to this is the role of central banks, which continue to reinforce their gold reserves as a hedging strategy facing a scenario of lower rates and greater economic uncertainty.