Gold surged to new highs on Wednesday, pushing past $4,500 an ounce (~Rs 1,44,225 per 10 grams) as investors sought safety amid mounting geopolitical strains
and growing confidence that US borrowing costs will fall further, according to a Bloomberg report. The rally has spilt across the precious-metals complex, with silver and platinum also notching record highs in a year that is rapidly reshaping long-term price benchmarks. Spot gold climbed close to 1 per cent, extending a four-day advance as tensions surrounding Venezuela intensified, the report added. The US blockade of oil shipments has sharpened market anxiety, reinforcing bullion’s appeal as a hedge against instability. At the same time, traders increasingly expect the Federal Reserve to continue easing monetary policy next year after a series of rate cuts, a backdrop that traditionally supports assets that offer no yield. Gold’s ascent has been nothing short of historic. Prices are up more than 70 per cent this year, marking the strongest annual performance since 1979. Silver’s gains are even more dramatic, with the metal soaring roughly 150 per cent over the same period. Central-bank buying and steady inflows into exchange-traded funds have provided a powerful foundation for the surge, with gold-backed ETF holdings expanding in nearly every month of the year, states the report. Investors Reprice Risk And Currency Value Political uncertainty has also played a role in the rally of gold and silver prices. US President Donald Trump’s confrontational trade stance and repeated pressure on the Federal Reserve earlier this year encouraged investors to rethink exposure to currencies and sovereign debt. That shift has helped fuel what many describe as a “debasement trade,” driving capital toward hard assets perceived to hold value over time, as per the Bloomberg report. “The dominant drivers for both gold and silver right now are the combination of sustained physical demand and renewed sensitivity to macro risk,” said John Feeney, business development manager at Guardian Vaults, a Sydney-based bullion dealer, according to the report. “We’re seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth.” After briefly pulling back from an earlier peak in October, gold rebounded swiftly, suggesting resilience rather than exhaustion. Several major banks, including Goldman Sachs Group Inc., expect prices to extend gains into 2026, with forecasts clustering near $4,900 an ounce and potential for further upside, states the report. Silver And Platinum Rewrite The Record Books Silver vaulted above $70 an ounce for the first time and later touched a fresh high near $72.70, as per the report. Supply disruptions, speculative interest, and lingering effects of an October short squeeze have combined to supercharge the move. While inventories are rebuilding in London, large volumes remain parked in New York as traders await clarity on potential US trade measures tied to critical minerals. “Unlike previous silver rallies driven primarily by leverage, this move is being underwritten by real demand for metal, which is changing how the market behaves around key price thresholds,” said Feeney in the report. “I can’t see an end to the trend just yet.” Platinum has joined the rally spectacularly, jumping beyond $2,300 an ounce for the first time in decades of data, claims the report. A tight supply, elevated borrowing costs, and disruptions in South Africa have pushed the metal toward its largest annual gain on record, underscoring the breadth and depth of the precious-metals boom.
