Unprecedented rally reaches fresh landmark
Precious metals have surged to record-breaking levels, with both gold and silver hitting new all-time highs as investors seek shelter from shifting monetary policy expectations and rising geopolitical uncertainty across global markets.
Gold has pushed close to $4,500.00 per ounce for the first time, extending a rally that has exceeded even the most optimistic forecasts. The strength of the move reflects growing conviction that the US Federal Reserve (Fed) is likely to maintain an accommodative policy stance and that central bank buying of the precious metal will continue into 2026.
Fed policy expectations fuel the advance
Recent economic indicators point to easing inflation pressures and a softening labour market, encouraging markets to price in two US interest-rate cuts next year.
Attention is now focused on the upcoming second estimate of third-quarter (Q3) US gross domestic product (GDP), which could provide further clarity on economic momentum and reinforce expectations for a more dovish Fed outlook.
Lower interest rates generally support gold by reducing the opportunity cost of holding non-yielding assets compared with interest-bearing instruments such as bonds.
Geopolitical tensions intensify safe-haven flows
Geopolitical developments have added another layer of support to precious metals. Reports suggest the United States is monitoring an additional vessel near Venezuela following the seizure of two tankers earlier this month, while Ukraine has conducted its first-ever strike on a Russian tanker in the Mediterranean.
These events have heightened concerns over global energy security and the stability of key trade routes, prompting renewed demand for safe-haven assets.
Gold is now up around 70% year-to-date, putting it on track for its strongest annual performance since 1979.
Institutional demand strengthens the trend
Beyond macroeconomic and geopolitical drivers, the rally has been reinforced by sustained central-bank buying and continued inflows into gold-backed exchange-traded funds. These trends point to enduring institutional confidence in gold as both a reserve asset and a portfolio diversifier.
Gold technical analysis
The gold price is on track for its fifth straight monthly gain whilst aiming for the psychological $5,000.00 mark. Judging by the steep ascent seen in the latter half of this year, it may be reached by the second quarter of 2026.