In this video: Markets Drop Economy Surges, See Why This Is A Nasty Mirage, Gold & Silver Jump Again! Video by Gareth Soloway.
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Gold and silver prices have jumped again, hitting new record highs, driven primarily by escalating geopolitical tensions, expectations of further U.S. interest rate cuts, and persistent central bank and industrial demand.
Key Drivers of the Rally
Geopolitical Uncertainty: Escalating global tensions, particularly between the U.S. and Venezuela, are driving investors to seek safe-haven assets, boosting demand for precious metals.
Federal Reserve Policy Expectations: Markets are pricing in expectations for further U.S. Federal Reserve interest rate cuts in 2026, a move that typically makes non-yielding assets like gold and silver more attractive compared to bonds and other fixed-income investments.
Weakening U.S. Dollar: The U.S. dollar is on pace for its steepest annual decline in years, making gold and silver cheaper for foreign investors and increasing global demand.
Central Bank Buying: Central banks globally, including those in China and India, have been accumulating significant gold reserves to diversify away from the U.S. dollar and hedge against economic turbulence, providing strong structural support for prices.
Supply Deficits (Silver): Silver, in particular, is experiencing a structural supply deficit due to increased industrial demand for use in solar panels, electric vehicles, and AI data centers, which is pushing prices higher.
Current Price Movements
Gold has surged by nearly 70% in 2025, with spot prices hitting a fresh record of approximately $4,500 per ounce on Monday, December 22, 2025.
Silver has outperformed gold in percentage terms this year, more than doubling in price and breaching the $70 per ounce mark for the first time.
Expert Outlook
Analysts remain largely bullish on both metals for the near term but also warn of potential short-term volatility and profit-taking after such a rapid ascent.
-Forecasts: Major banks like Bank of America and HSBC see gold potentially reaching $5,000 per ounce in 2026 if current macro conditions persist. Silver is projected to test further resistance levels near $72 and $88.
-Risks: A potential risk to the rally would be an unexpectedly hawkish shift from the Federal Reserve or a sharp de-escalation of global tensions, which could temporarily dampen safe-haven demand.
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