Washington: Gold prices climbed to a fresh record on Monday, supported by strong expectations that the United States Federal Reserve will cut interest rates next year, while silver also surged to a new peak as investors continued to move toward safe assets.
Spot gold crossed the 4400 dollar per ounce mark for the first time during early trade before easing slightly, but it remained near record levels. The yellow metal has gained sharply this year and is heading for its strongest annual performance in decades, driven by falling bond yields, a softer dollar and steady buying by central banks.
Silver extended its rally and touched a new all time high, outperforming gold on a yearly basis. The metal has been boosted by a mix of investment demand and supply concerns, along with its growing use in industrial applications. In India, silver prices have also climbed to historic highs, reflecting the global surge.
Market sentiment has been shaped by growing bets that the US central bank will begin cutting rates in early 2026 as inflation cools and signs of weakness appear in the labour market. Lower interest rates tend to support gold and silver because they reduce the opportunity cost of holding non yielding assets.
Analysts say geopolitical tensions and economic uncertainty are also keeping safe haven demand strong. At the same time, some caution that prices could see short term swings as investors book profits after the sharp rise, especially toward the year end when trading volumes are thinner.
Despite the possibility of brief pullbacks, the overall outlook for precious metals remains positive, with many investors expecting gold and silver to stay well supported as long as rate cut expectations and global risks continue to dominate market thinking.