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Marking a substantial increase from its $2,600 per ounce valuation at the beginning of the year, gold has now broken new ground, trading above $4,400 (£3,275) an ounce for the first time in history. This latest record high for the precious metal is largely underpinned by a strengthening investor appetite for safe haven assets. Analysts explain that this demand is being fueled by ongoing geopolitical tensions, the lingering effects of Trump tariffs, and widespread expectations that the US central bank will implement additional interest rate cuts next year.
The prices of other precious metals also rose on Monday, with silver hitting a record high as well.
The gold price has risen more than 68% this year, the highest increase since 1979.
After passing the $4,400 an ounce mark on Monday, the spot price of gold hit a high of $4,426.66.
Lower interest rate expectations typically mean lower returns for investments such as bonds, so investors look to commodities such as gold and silver to get a return, but also diversify their portfolios.
The consensus among analysts currently is that the US will lower interest rates twice in 2026.
Another factor adding to demand is that central banks globally are expanding their own physical holdings of gold as a way to counter economic turbulence, reduce reliance on the US dollar, and diversify their own portfolios, according to analysis from Goldman Sachs, which predicted the pattern would continue in 2026.
A weaker US dollar has also helped push gold prices higher by making the metal cheaper for overseas buyers.
Other precious metals have also had record years. The price of silver also hit a record of $69.44 an ounce on Monday.
For 2025 so far, silver is up 138% year-to-date and platinum is at a 17-year high, vastly outperforming gold, underpinned by strong supply constraints, according to analysts.
Unlike gold, the other precious metals are also used widely in industrial manufacturing which helps stoke demand.
