Gold Smashes $4,400 Record as Rate-Cut Bets, Trade Wars, and Global Turmoil Ignite Safe-Haven Rush
Gold Smashes $4,400 Record as Rate-Cut Bets, Trade Wars, and Global Turmoil Ignite Safe-Haven Rush
Gold prices surged to a fresh all-time high on Monday, breaking above $4,400 (£3,275) an ounce for the first time, as investors poured into safe-haven assets amid expectations of future U.S. interest rate cuts and growing global uncertainty.
The precious metal briefly touched $4,426.66 an ounce in spot trading after starting the year near $2,600. Analysts say mounting bets that the U.S. Federal Reserve will lower interest rates again next year have boosted demand, as lower rates typically reduce returns on bonds and make non-yielding assets like gold more attractive.
Geopolitical instability, ongoing trade tensions linked to President Donald Trump’s tariff policies, and persistent fears of economic turbulence have further fueled the rally. According to Adrian Ash, director of research at BullionVault, gold’s more than 68% rise in 2025 marks its strongest annual performance since 1979.
“Slow-burning trends around interest rates, war, and trade tensions have all combined to push gold higher,” Ash said, adding that political and economic shocks have driven investors toward precious metals as a hedge against uncertainty.
Expectations that the Federal Reserve will cut rates twice in 2026 have also played a role. Lower borrowing costs tend to weaken the U.S. dollar, making gold cheaper for overseas buyers and increasing global demand for the metal.
Central banks have been another major force behind the rally. According to Goldman Sachs, monetary authorities worldwide are continuing to expand their physical gold reserves to diversify away from the U.S. dollar and protect against economic volatility — a trend the bank expects to persist into 2026.
Financial planners say gold’s steady climb reflects deeper anxieties about inflation and policy stability. “When confidence in financial assets starts to wobble, gold often responds first,” said Anita Wright, a chartered financial planner at Ribble Wealth Management, describing the metal as a traditional shield against economic turmoil.
Other precious metals have also enjoyed historic gains. Silver hit a record $69.44 an ounce, climbing 138% year-to-date, while platinum reached a 17-year high, outperforming gold thanks to tight supply and strong industrial demand.
Unlike gold, metals such as silver and platinum are heavily used in manufacturing, further boosting demand during periods of constrained supply. Analysts say that combination has supercharged gains across the broader precious metals market.
Meanwhile, oil prices also edged higher on Monday after the U.S. ordered a blockade of sanctioned oil tankers entering and leaving Venezuela. Brent crude rose to $61.78 a barrel, while U.S. oil climbed to $57.77, though both benchmarks are still on track to finish 2025 below where they began the year.
