Gold breaks $4,500 as silver and platinum set new records

Gold surged past the $4,500-an-ounce mark for the first time on Wednesday, while silver and platinum also reached record highs, as investors rushed into precious metals amid geopolitical and trade tensions and expectations of further US interest rate cuts in 2026.

Spot gold rose 0.2 percent to $4,495.39 an ounce by early trading, after touching a record high of $4,525.19 earlier in the session. US gold futures for February delivery climbed 0.4 percent to a new peak of $4,522.10.

Silver gained 1.1 percent to $72.16 an ounce after hitting an all-time high of $72.70, while platinum jumped 2.5 percent to $2,333.80, having earlier peaked at $2,377.50. Palladium rose nearly 3 percent to $1,916.69, its highest level in three years.

Analysts said demand for precious metals has been driven by their role as hedges against geopolitical uncertainty, de-globalisation and trade risks, particularly as tensions between the United States and China persist. Thin year-end trading conditions also amplified price moves.

Gold has climbed more than 70 percent so far this year, marking its strongest annual gain since 1979, supported by safe-haven demand, expectations of US rate cuts, strong central bank buying, de-dollarisation trends and exchange-traded fund inflows. Markets are currently pricing in two rate cuts next year.

Silver has surged more than 150 percent over the same period, outperforming gold on strong investment demand and momentum buying, while platinum and palladium have rallied sharply on tight supply, tariff uncertainty and a rotation of investment flows into the metals.

Despite the sharp gains, analysts cautioned that thin liquidity could leave prices vulnerable to volatility, even as the broader bullish trend in precious metals remains intact.