Gold and silver prices surged to new record highs during Asian trading on Monday, as rising geopolitical tensions in the Middle East and Latin America fueled demand for safe-haven assets.
Spot gold jumped 1.4% to an all-time high of $4,403.60 per ounce, breaking above its previous peak set in October. Gold futures for February delivery also gained more than 1%, reaching $4,442.55 per ounce.
Silver posted even stronger gains. Spot silver climbed over 3% to a record $69.4545 per ounce, while silver futures touched $69.515 per ounce.
Other precious metals extended their rallies as well, supported by expectations of lower interest rates, stronger demand, and tighter supply conditions in the year ahead. Spot platinum advanced more than 2%, breaking above $2,000 per ounce for the first time since 2008. Palladium surged nearly 5% to a near three-year high of $1,799.20 per ounce.
Monday’s move marked the latest leg of a prolonged rally across metal markets. Investors have increasingly turned to havens amid concerns over slowing global growth and growing bets that the United States will deliver further interest rate cuts in 2026, boosting the appeal of physical assets.
Analysts at OCBC said gold continues to benefit from both structural and cyclical tailwinds, including an easing cycle by the Federal Reserve, sustained central bank buying, and heightened geopolitical and policy uncertainty. They noted that gold is increasingly viewed as a strategic portfolio allocation, rather than a short-term hedge. However, they cautioned that silver could face pullbacks if industrial demand weakens or growth expectations deteriorate.
Geopolitical tensions drive haven demand
Demand for safe-haven assets was further supported by reports that Israel plans to brief the United States on potential renewed military action against Iran, amid concerns that Tehran is continuing its nuclear activities. Iran and Israel exchanged strikes earlier in 2025, a conflict that escalated into U.S. airstrikes on Iranian nuclear facilities before a ceasefire was reached.
Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump are expected to meet later this month, with Israel reportedly seeking stronger U.S. action against Iran.
Geopolitical uncertainty also increased in Latin America, after reports said the U.S. was preparing to intercept a third oil tanker off the coast of Venezuela. Washington has intensified scrutiny of Caracas, accusing it of using oil revenues to fund drug trafficking and illegal immigration. The Trump administration recently ordered a blockade of sanctioned Venezuelan oil shipments and raised the possibility of further military action.
Precious metals rally on rate-cut bets and supply outlook
Gold and silver have extended gains in recent weeks as confidence grows that U.S. interest rates will fall further in 2026. A series of mixed U.S. economic indicators has reinforced expectations of easier monetary policy.
Silver, platinum, and palladium have significantly outperformed gold this year. Analysts point to improving demand for industrial metals used in electronics and automotive components, alongside expectations of a potential supply crunch next year.
Copper hits record high on demand expectations
Copper prices also rallied alongside precious metals, as demand for physical assets spilled into the industrial metals sector. Optimism around stronger global demand, additional stimulus in China, and rising consumption from artificial intelligence data centres supported prices.
Benchmark copper futures on the London Metal Exchange rose 0.8% to a record $11,977 per metric ton, while COMEX copper futures gained more than 0.5% to $5.5420 per pound, although they remained below highs reached earlier this year.
