Khaberni - Gold and silver prices jumped and recorded new record levels on Friday, driven by demand for safe havens and increased expectations of another cut in US interest rates next year, at a time when platinum and palladium prices also saw a significant rise.
Gold rose in spot transactions by 0.5% to $4502.75 per ounce (ounce) after it had recorded a new record level at $4530.60 earlier in the session.
US futures gold for February delivery rose by 0.7% to a new record level at $4533.60 per ounce.
Silver jumped in spot transactions by 3.4% to $74.35 per ounce, before recording its highest level ever at $75.14.
The dollar hovered near its lowest level in two months recorded on Wednesday.
Gold performed impressively in the year 2025, climbing 72% so far and breaking one record level after another.
This performance was supported by a number of factors including the cut in US interest rates and expectations of more monetary easing, alongside geopolitical uncertainty, strong demand from central banks as countries seek to reduce their investments in US securities and the dollar, as well as rising holdings of traded index funds.
Meanwhile, silver prices jumped 158% since the beginning of the year, far surpassing gold, and breaking through the $75 barrier, driven by a shortage of inventories, its inclusion on the US list of critical minerals, and strong industrial demand.
On the macroeconomic front, the Fed Watch tool shows that traders still expect two cuts in US interest rates next year.
Assets that do not yield returns, like gold, tend to rise during times of declining interest rates.
Platinum jumped 8% and reached an unprecedented level at $2413.62 per ounce.
Palladium rose 4.4% to $1757.25 per ounce.
