Gold and silver hit historic milestones Friday, capping a blistering year-end rally driven by bets on Federal Reserve rate cuts, a sliding US dollar and intensifying global tensions that sent investors scrambling for hard assets.
Gold surged past $4,500 an ounce — cementing its strongest annual performance since 1979 — while silver surpassed the $75 threshold for the first time ever.
Spot gold touched a record $4,530.60 an ounce earlier in the session, according to market data, before easing slightly but staying firmly above the once-unthinkable $4,500 mark, Bloomberg noted.
The precious metal is now up roughly 73% for the year — crowning a seemingly relentless climb that accelerated sharply in the final months of 2025.
The rally has been powered in large part by expectations that the Federal Reserve is preparing to pivot into an easing cycle, slashing interest rates as economic momentum cools.
Lower rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more attractive relative to bonds and cash.
At the same time, a weaker US dollar has amplified the move, making gold cheaper for overseas buyers and fueling fresh waves of global demand.
Safe-haven buying has also surged amid rising geopolitical risks, with investors reacting to heightened tensions involving Venezuela, ongoing instability in the Middle East, war in Eastern Europe and recent US military strikes in Nigeria.
Central banks have played an outsized role as well, continuing an aggressive accumulation spree that has tightened supply in the physical market.
Led by China, India and Poland, central banks have now bought more than 1,000 metric tons of gold for a third straight year, according to industry estimates, underscoring a broad push to diversify reserves away from the dollar.
That steady official-sector buying has provided a powerful backstop under prices, even during brief pullbacks.
Silver is now up an eye-popping 150% to 160% for the year, more than double gold’s already historic gains and one of the most explosive runs in modern commodity-market history.
Like gold, silver has benefited from expectations of easier monetary policy and its role as a store of value during periods of uncertainty.
