- Silver reached a record high of $70 per ounce amid geopolitical tensions and rate cut hopes
- Gold hit an all-time peak of $4,484, marking its 50th record-breaking day in 2025
- US Fed rate cut expectations boosted demand for non-yielding precious metals like silver and gold
Silver hit a record high of $70 per ounce on Tuesday, and gold peaked to an all-time high of $4,484 — the 50th day it has broken records this year — as investors weighed escalating geopolitical tensions and the prospects for more US rate cuts.
Silver has been the undisputed star of 2025. Its rally is buoyed on renewed hopes of a US Federal Reserve rate cut in January, which raises the appeal of non-yielding assets like precious metals. The price surge is further supported by a fifth consecutive year of global supply squeeze and robust industrial demand from sectors like solar and electronics.
Similarly, Gold is also riding a wave of bullish factors, including geopolitical tensions that are boosting safe-haven buying. Strong ETF inflows and a global de-dollarisation trend are also adding structural support. Analysts expect gold to remain firm if monetary easing coincides with persistent uncertainty, reinforcing its role as a portfolio hedge.
The fresh surge in global rates also resulted in a climb in metal futures on India's Multi Commodity Exchange. Gold futures were trading 1.07% higher at Rs 1.38 lakh per 10 gram, whereas silver futures were up 1.32% at Rs 2.15 lakh a kilogram.
Notably, 2025 has been a blockbuster year for the precious metals, with gold prices rising over 70%, and silver rates surging by over 120% so far.
Gold's structural drivers, geopolitical risks, central bank accumulation, and ETF demand remain intact, providing a firm long-term foundation. However, analysts caution against chasing the momentum blindly in 2026.
“While the fundamental backdrop remains strong, some catalysts may gradually mature, leading to intermittent price or time-based corrections,” according to Amit Kedia Advisories.
Gold Sets 50th Daily Record This Year On Rate-Cut Bets And RiskWatch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.