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

The true challenge facing the Arctic is climate change, rather than imagined security threats and geopolitics, former Chinese Vice Foreign Minister Fu Ying said at the Arctic Circle Assembly 2026, held from Thursday to Saturday in Reykjavik, Iceland.

At a plenary session themed "How to Understand China," Fu, also head of the Chinese delegation, held a dialogue with former Icelandic President and Arctic Circle Chairman Olafur Ragnar Grimsson.

Fu said that the Arctic's genuine challenges stem from climate change, and more attention and resources should be directed toward scientific research and environmental protection in the region.

She said too much discussion remains bogged down in imagined security threats and geopolitics, wasting valuable time and resources.

Fu also said that the joint statement issued by the leaders of China and Iceland last year emphasized strengthening cooperation in climate change and green energy, and such pragmatic cooperation better reflects China's policies and intentions regarding its participation in Arctic affairs.

Addressing China's development and its international role, Fu said that China is committed to peaceful development, has no intention of vying for world hegemony, and does not believe the world needs a new hegemony.

China is willing to work with all countries to strengthen cooperation and promote a more just and reasonable global governance system, Fu said.

Founded in 2013 by Grimsson, the assembly convenes every October in Iceland and serves as a major international dialogue platform for global Arctic affairs.

This year's event brought together over 2,500 delegates from more than 70 countries and regions to discuss topics including understanding, protecting, developing, and governing the Arctic.

Real challenge facing Arctic is climate change: former Chinese diplomat