Gold prices surged to a fresh all-time high on Tuesday, approaching the $4,500 per ounce threshold, while silver soared past $70 for the first time ever. The rally was fueled by a weakening U.S. dollar, expectations of Federal Reserve rate cuts in 2026, and heightened geopolitical uncertainty—including President Trump’s recent escalation of pressure on Venezuela.

Spot gold rose 0.72% to $4,477.45 per ounce after hitting an intraday peak of $4,497.55, while U.S. gold futures for February delivery climbed 0.92% to $4,509.10. Silver jumped 2.13% to $70.4932, extending its year-to-date gain to over 140%.

Drivers: Dovish Fed Bets, Dollar Weakness, and Safe-Haven Demand

The dollar extended its decline, heading for its largest annual drop since 2017, as markets priced in two Fed rate cuts for 2026 and anticipated a dovish shift under a new chair appointment early next year. Geopolitical tensions also bolstered haven appeal, with Trump ordering a blockade of sanctioned oil tankers to and from Venezuela and hinting at potential military conflict.

“Expectations for a dovish Fed, markets losing confidence in the greenback, geopolitical tensions, central bank buying… Investors’ lust of gold remains massive,” said Carlo Alberto De Casa of Swissquote. Analyst Ahmad Assiri of Pepperstone noted that $4,500 and $70 are now “reference points within ongoing trends,” suggesting further upside potential.

Silver’s Stellar Run

Silver’s rally has been powered by a combination of structural supply deficits, robust industrial demand—particularly in green technology—and strong investment inflows. With both metals demonstrating sustained momentum, the precious metals surge appears firmly entrenched as 2025 draws to a close, supported by a macroeconomic landscape defined by monetary easing, dollar softness, and persistent global risks.