Gold price climbs above $4,400 to hit record high

The gold price broke a new record, trading above $4,400 per ounce for the first time.

Analysts said the price of the precious metal rose on expectations that the US central bank will cut interest rates further next year.

Gold started the year valued at $2,600 per ounce, but geopolitical tensions, Trump tariffs and interest rate cut expectations have increased investor demand for safe-haven assets such as gold and other commodities.

Prices of other precious metals such as silver and platinum also increased.

Gold’s spot price rose as high as $4,420 before falling back on Monday.

According to Adrian Ash, research director of bullion market BullionVault, the price of gold has increased by more than 68% this year, the highest increase since 1979.

Mr Ash said 2025 sees “slow-burning trends around interest rates, war and trade tensions”, helping to lift the price of gold.

“The precious metals market is saying that President Trump has really triggered something and gold is going crazy this year.

“There is a trade war, there are attacks on the US Federal Reserve and there are geopolitical tensions, all these provocations are coming from Trump,” he said.

Lower interest rate expectations generally mean lower returns for investments such as bonds; Therefore, investors turn to commodities such as gold and silver to generate returns while also diversifying their portfolios.

The weakening of the US dollar has also helped lift gold prices by making the metal cheaper for overseas buyers.

Other precious metals also experienced record years. The silver price also reached a record at $69.44 per ounce on Monday.

Silver is up 138% for 2025 so far and platinum is at a 17-year high, far outperforming gold and supported by strong supply constraints, according to analysts.

Unlike gold, other precious metals are also widely used in industrial production, helping to increase demand.