Gold Sets 50th Daily Record This Year On Rate-Cut Bets And Risk
Bullion climbed beyond $4,465 an ounce for the first time, after gaining 2.4% in the previous session
Gold rose to an all-time high on Tuesday — the 50th day it’s broken records this year — as investors weighed escalating geopolitical tensions and the prospects for more US rate cuts.
Bullion climbed beyond $4,465 an ounce for the first time, after gaining 2.4% in the previous session — its biggest one-day advance in more than a month. Traders are betting that the Federal Reserve will lower the cost of borrowing again next year, creating a lower interest-rate environment that would benefit non-yielding precious metals.
Gold’s haven appeal has been amplified in the last week by rising geopolitical tensions, particularly in Venezuela, where the US has blockaded oil tankers as it ratchets up pressure on the government of President Nicolás Maduro.
Gold has gained 70% this year in a scorching rally underpinned by elevated central-bank purchases and inflows into bullion-backed exchange-traded funds. The metal is on track for its best annual performance since 1979. Total holdings in gold-backed ETFs have risen every month this year except May, according to data from the World Gold Council.
US President Donald Trump’s aggressive moves to reshape global trade — as well as his threats to the Fed’s independence — added fuel to the bull run earlier this year. Investors have also played a hugely important role, spurred in part by the so-called debasement trade — a retreat from sovereign bonds and the currencies they are denominated in over fears their value will erode over time due to ballooning debt levels.
Bullion has bounced back quickly after a retreat from its previous peak in October, when the rally was seen as crowded and overheated, and is now positioned to carry these gains into next year. Goldman Sachs Group Inc. is among several banks to predict prices will keep rising in 2026, issuing a base-case scenario of $4,900 an ounce with risks to the upside.
Spot gold rose 0.5% to $4,467.57 an ounce as of 8:20 a.m. in Singapore. Silver edged up 0.1% to $69.09, not far from the previous session’s all-time high of $69.4549. Platinum and palladium rose, while the Bloomberg Dollar Spot Index was down 0.1%.
