Khaberni - Gold exceeded the 4500 dollar per ounce level on Wednesday for the first time ever, driven by an increase in demand for a safe haven and expectations of continued U.S. interest rate cuts next year, as silver and platinum also rose to record levels.
Gold in spot transactions rose about 0.4% to 4503.59 dollars per ounce by 00:00 GMT, after having earlier reached a record high of 4509.65 dollars. U.S. futures delivery for February climbed 0.7% to a record 4540.60 dollars per ounce.
Silver in spot transactions increased 0.5% to 71.80 dollars per ounce. Silver had earlier reached its highest ever level at 71.85 dollars.
The dollar dropped to nearly a three-month low on Tuesday against a basket of other major currencies, making gold priced in U.S. currency more attractive to buyers abroad.
Gold saw a strong rise in 2025, climbing 72% and registering record levels multiple times.
Gold has benefited from several factors this year including U.S. interest rate cuts, bets on continued monetary easing, international conflicts, and strong demand from central banks attempting to diversify their reserves away from the dollar, as well as rising investment demand in exchange-traded funds.
Silver has risen 149% since the beginning of the year, outperforming gold significantly, and surpassed the 70 dollar barrier driven by a structural deficit and its inclusion in the list of critical metals in the United States along with strong industrial demand.
In terms of macroeconomics, traders still expect two U.S. interest rate cuts next year.
For other precious metals, platinum in spot transactions rose 2.9% to 2342.25 dollars per ounce after reaching its highest level ever at 2347.40 dollars, while palladium increased nearly 3% to 1919.69 dollars per ounce, its highest level in three years.
