Gold soared to a fresh all-time high of $4,445.80 per ounce on Monday, while silver tagged along with even more enthusiasm, hitting $68.96 per ounce.
Spot prices settled slightly lower but still glittering, with gold at $4,414.99 and silver at $68.98. Both metals have delivered eye-watering gains this year—gold up nearly 70%, silver a whopping 128%.
Portfolio managers are hastily rebalancing before year-end, swapping volatile tech stocks for something that won’t crash when the Wi-Fi goes down. Gold miners saw their U.S.-listed shares jump in premarket trading, with the iShares MSCI Global Gold Miners ETF climbing almost 2.7%.
Meanwhile, everyday folks are reconsidering that old wedding ring in the drawer. At these prices, selling grandma’s heirloom might fund a decent vacation—though good luck explaining that at family dinner.
The rally comes despite the Federal Reserve’s recent interest rate cut on December 10, which briefly sent AI stocks partying again.
Yet lingering speculation about next year’s economy has global investors playing defense, turning to precious metals like nervous squirrels stashing nuts. Gold, the classic safe-haven darling during turbulence, has been shattering records all year as riskier assets stumbled.
Silver has benefited from the same tailwinds plus its industrial charm. Experts point to ballooning fiscal deficits across the U.S., U.K., Europe, Japan, and even China as key culprits.
Matthew McLennan, head of global value at First Eagle Investments, noted that gold’s monetary hedge value has quietly reemerged.
Speaking to CNBC, he observed how gold shifted from undervalued to fairly priced, pulling other precious metals up with leverage. Investors are also eyeing the upcoming race for the next Federal Reserve chair.
With President Trump’s past comments on current chair Jerome Powell, questions swirl about the central bank’s independence. McLennan emphasized long-term U.S. fiscal credibility as crucial for a rational Fed leader. He added that wage inflation remains a wildcard.
Job openings have ticked higher lately, potentially tracking corporate earnings upward. In this environment, precious metals shine brighter than usual. Gold miners are certainly not complaining, as their shares perk up on the news.
For investors, the message seems clear: when paper promises feel shaky, something tangible and eternally lustrous holds appeal. Who knew digging up old rocks could look so forward-thinking?
The shortened holiday trading week may bring more volatility. But for now, gold and silver are enjoying their moment in the sun—or rather, under the vault lights.
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