Precious Metals Year-End Sprint: Why Are Gold and Silver Continuously Breaking Through Historical Milestones?

Breaking news from the Asian trading session—spot gold suddenly accelerated in Monday’s early trading, with prices breaking through $4,372 per ounce, a daily increase of $33; silver moved in tandem, hitting record highs. This wave of market movement is not an isolated event but a natural result driven by multiple factors.

Policy Expectations as the Main Driving Force

The Federal Reserve’s rate cut expectations have become the core support for recent precious metal rallies. Based on recent economic data over the past week, market traders widely bet that the Fed will implement two rate cuts by 2026. This more accommodative monetary policy environment is undoubtedly a major positive for gold and silver, which do not generate interest—holding costs decrease, and relative attractiveness increases.

Currently, gold prices are approaching the October high of $4,381 per ounce, just one step away from a full breakout. Once this key resistance is broken, technical analysis suggests room for further upward movement toward $4,400, $4,450, and even $4,500.

Geopolitical Tensions Reinforce Safe-Haven Attributes

As traditional safe-haven assets, gold and silver are being repriced amid complex international circumstances. Escalating US sanctions on Venezuelan oil and Ukraine’s first maritime attack on Russia’s “shadow fleet” in the Mediterranean are reminders that uncertainty still exists. Investors are thus tilting toward precious metals to hedge potential risks.

Silver’s performance has been particularly impressive, surging 1.3% to $68.05 per ounce. Besides fundamental support, the historic supply crunch event in October continues to ferment, with speculative funds flowing in steadily. The trading volume of Shanghai silver futures confirms this hot trend.

Long-Term Trends Confirm Institutional Optimism

Looking at the full year, the performance of precious metals has been historic. Gold has gained approximately 66%, and silver has more than doubled, marking the strongest annual gains since 1979—backed by continuous central bank purchases and massive inflows into ETFs.

Tracking data shows that gold ETFs have experienced net inflows for five consecutive weeks, with holdings reaching new highs in most months. This indicates that institutional investors are not engaging in short-term speculation but are confident in the long-term outlook. Major international investment banks have also sent clear signals: Goldman Sachs analysts set a baseline target of $4,900 per ounce for gold and believe the upside risk is greater.

Technical Outlook

From a trading perspective, whether gold can sustain its rally depends on whether it can effectively break through the October high of $4,381. Once it stabilizes above $4,400, upward momentum will further accelerate. Conversely, if it falls below the support at $4,300, traders will shift to defending the high of $4,285 on December 11, then watch for $4,250 and the psychological level of $4,200.

Currently, gold is hovering around $4,372, with market sentiment clearly leaning toward bullishness. Supported by rate cut expectations, geopolitical tensions, and supply-demand imbalances, the rally in precious metals is far from over.