Gold prices climbed to a fresh record on Monday, trading above $4,400 (£3,275) an ounce for the first time. The spot price later reached $4,426.66, extending a strong 2025 rally.
Analysts said the rise reflects expectations that the US Federal Reserve will cut interest rates further next year. Lower rate expectations can reduce the appeal of interest-bearing assets such as bonds, prompting some investors to shift towards commodities, including gold, to diversify portfolios.
Gold began 2025 at about $2,600 an ounce and is now up more than 68% for the year, according to BullionVault research. Demand has also been supported by geopolitical tensions and trade uncertainty, alongside a weaker US dollar, which can make gold cheaper for overseas buyers.
Other precious metals also rose. Silver hit a record $69.44 an ounce, with analysts noting gains of about 138% year to date. Platinum reached a 17-year high, helped by industrial demand and supply constraints.
Separately, oil prices edged higher after the US ordered a blockade of sanctioned oil tankers entering and leaving Venezuela. Brent crude rose to $61.78 a barrel and US oil to $57.77, although both benchmarks remain lower than where they started 2025.
“2025 has seen slow-burning trends around interest rates, around war and trade tensions,” said Adrian Ash of BullionVault. “When confidence in financial assets and policy stability starts to wobble, gold tends to respond first,” said Anita Wright of Ribble Wealth Management.
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