Gold and silver set new price records: what is the reason?

Gold and silver prices have surged to new all-time highs amid geopolitical tensions and expectations of lower U.S. interest rates. Precious metals are on track for their best annual performance in decades.

This is reported by Bloomberg.

Gold bullion rose more than 1.5% to $4,420 an ounce, surpassing an October record. Silver rose 3.4% to near $70 an ounce. Both metals are on track for their strongest annual gains since 1979.

The price increase was fueled by traders’ expectations that the US Federal Reserve will cut interest rates twice in 2026. Lower rates traditionally increase interest in non-interest-bearing assets. Geopolitical tensions, including the US oil blockade of Venezuela, were an additional factor.

The spot price of gold rose to $4,412 an ounce, while silver rose to almost $69. Other metals also rose in price, with palladium up more than 3% and platinum up more than 4%.

Gold has risen nearly 70% since the beginning of the year. The market is supported by active purchases by central banks and an inflow of funds into exchange-traded funds backed by gold. US President Donald Trump’s tough trade statements and his rhetoric about the independence of the US central bank have also had an additional impact.

Analysts note that ETF investors are increasingly competing with central banks for physical reserves of the metal. Large financial institutions predict further price growth in 2026 and do not rule out the renewal of new highs.

As previously reported, the Central Bank of Russia has for the first time begun direct sales of gold from its reserves on the domestic market, opening access to the metal for banks, state-owned companies, and investment structures.

Recall that on October 7, gold reached a new historical high, approaching $4,000 per ounce.

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