Gold climbs above $4,400, hitting record high

Gold prices reached new highs, surpassing $4,400 (£3,275) an ounce for the first time.

Precious metal prices rose on expectations the Federal Reserve will cut interest rates further next year, analysts said.

Gold started the year at $2,600 an ounce, but geopolitical tensions, Trump tariffs and expectations of interest rate cuts have increased investor demand for safe-haven assets such as gold and other commodities.

Prices for other precious metals such as silver and platinum also rose.

Gold spot prices hit a high of $4,420 on Monday before retreating.

Adrian Ash, research director at bullionVault, said gold prices have risen more than 68% this year, the highest increase since 1979.

Ashe said “trends around interest rates, wars and trade tensions are slowly developing” in 2025, which could help push gold prices higher.

“Precious metals markets are saying that President Trump did trigger something – gold has gone crazy this year.

“The trade war, the attacks on the Fed, the geopolitical tensions, all of those provocations are coming from Trump,” he said.

Lower interest rate expectations often mean lower returns on investments like bonds, so investors look to commodities like gold and silver to get returns but also to diversify their portfolios.

The current consensus among analysts is that the United States will cut interest rates twice in 2026.

Another factor increasing demand is that central banks around the world are expanding their physical gold holdings in response to economic turmoil, reducing reliance on the U.S. dollar and diversifying their investment portfolios, Goldman Sachs analysis shows, predicting this pattern will continue in 2026.

Anita Wright, chartered financial planner at Ribble Wealth Management, said the steady rise in gold prices throughout the year may be because it is seen as a way for traders to protect themselves from the threat of inflation and economic instability.

“When confidence in financial assets and policy stability begins to waver, gold, as a major monetary metal, tends to be the first to react,” Ms Wright said.

A weaker dollar also makes gold cheaper for overseas buyers, pushing gold prices higher.

Other precious metals are also experiencing record years. Silver prices also hit a record high of $69.44 an ounce on Monday.

Analysts say silver is up 138% so far this year and platinum is at a 17-year high through 2025, far outperforming gold on the back of strong supply constraints.

Unlike gold, other precious metals are also widely used in industrial manufacturing, which helps stimulate demand.

Separately, oil prices rose on Monday after the United States last week ordered a “blockade” of sanctioned tankers entering and exiting the country.

Brent crude rose 53 cents to $60.99 a barrel, while U.S. oil rose 1.6% to $57.40 a barrel. However, by the end of 2025, both indicators appear to be priced lower than they were at the beginning of the year.