Gold, silver prices soar to new record highs as investors hunt for safety

Both Gold and silver prices hit record highs on Monday, driven by geopolitical tensions and market expectations for further U.S. Federal Reserve rate cuts.

Spot gold prices breached 4,420 U.S. dollars per ounce during the intraday trading on Monday, while gold futures contract on the New York Mercantile Exchange (NYMEX) briefly surpassed 4,450 U.S. dollars per ounce, both hitting all-time highs.

In addition, the silver futures contract on NYMEX climbed above 69.5 U.S. dollars per ounce on Monday, surging nearly three percent, also reaching a record high.

Bloomberg News reported that escalating geopolitical tensions and market expectations for further Fed rate cuts were the primary drivers behind the soaring gold prices.

Traders anticipate the Fed will cut rates twice in 2026 following last week's release of a series of U.S. economic data.

Meanwhile, U.S. President Donald Trump has consistently advocated more accommodative monetary policies.

Persistent geopolitical tensions in recent weeks have also heightened the safe-haven appeal of gold and silver.

Bloomberg projected on Monday that both gold and silver are poised for their strongest annual gains since 1979.

Due to purchases of central banks and inflows into exchange traded funds (ETFs), gold prices have surged by about two-thirds this year.

Gold-backed ETFs have recorded five consecutive weeks of increased inflows.

World Gold Council data shows that, except for May, the total holdings of these funds have increased month on month this year.

Beyond central banks, investors have also played a significant role in the gold price rally.

Fueled by concerns over the value of sovereign bonds and their denominating currencies, investors have been fleeing these assets.

The Wall Street Journal reported in October that investors who were concerned about the outlook for currencies like the U.S. dollar were aggressively buying alternative assets such as gold.

Goldman Sachs released a research report on December 18, forecasting that gold prices would rise to 4,900 U.S. dollars per ounce by the end of 2026.

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

Gold, silver prices soar to new record highs as investors hunt for safety

During the recent conflict, the U.S. deployed military equipment on a scale more than ten times that of Iran's forces, but failed to achieve its objectives, Iran's Islamic Revolutionary Guard Corps (IRGC) Deputy Commander-in-Chief Mostafa Izadi said on Wednesday.

Izadi said the conflict had challenged the longstanding perception of U.S. military superiority, with senior U.S. military officials now acknowledging the pressure exerted by Iran's strategic and military capabilities.

He also said that Iran's production capacity for advanced drones and missiles has now surpassed its defensive needs, producing several times more than previously launched at enemy targets. Additionally, the development of Iran's new air defense systems is progressing steadily.

Iran's acting Defense Minister Ebn Al-Reza said that Iranian battlefield analysis shows the enemy deployed its highest level of technology against Iran, and that the conflict has provided Tehran with significant technical expertise and intelligence.

In another development, Secretary of Iran's Supreme National Security Council Mohsen Rezaei said Wednesday that Iran's new strategy in the fields of war, diplomacy and economy will soon "shatter" the U.S. foundations.

"Iran's new strategy on the battlefield as well as in the fields of diplomacy and countering the economic siege will shatter your (U.S.) foundations," he posted on X, reacting to the deadly overnight U.S. attacks.

Earlier in the day, U.S. Central Command said on X its forces had "successfully completed a wave of strikes against Iranian military targets," citing "recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members."

Iran responded by attacking U.S. bases and assets in Jordan, Kuwait, Bahrain, Iraq's semi-autonomous Kurdistan region and the United Arab Emirates.

Iranian military official says U.S. recent attacks all fail