Gold Sets 50th Daily Record This Year on Rate-Cut Bets and Risk
Gold surged to a new all-time high on Tuesday (December 23), marking the 50th record-breaking session for the metal this year, as investors balanced worsening geopolitical strains against growing expectations of further US interest-rate cuts.
- Gold's price set its 50th daily record of the year, driven primarily by investor bets on future Federal Reserve interest rate cuts.
- Increased geopolitical risk, including tensions related to Venezuela and US trade policy, has spurred "safe-haven" buying of the precious metal.
- The rally is also supported by strong demand from central banks and significant inflows into gold-backed exchange-traded funds (ETFs).
- Investor concerns about currency debasement and swelling government debt are also contributing to gold's appeal over sovereign bonds.
Bullion climbed past US$4,465 an ounce for the first time, extending a sharp move that followed a 2.4% jump in the previous session, its strongest one-day gain in more than a month.
Traders have increasingly priced in another round of Federal Reserve easing next year, a backdrop that typically supports non-yielding assets such as precious metals.
Haven buying has intensified over the past week as geopolitical tensions have flared, with particular focus on Venezuela after the United States blockaded oil tankers as it stepped up pressure on President Nicolás Maduro’s government.
The rally has been blistering.
Gold is up about 70% this year, supported by strong central-bank demand and renewed inflows into bullion-backed exchange-traded funds.
World Gold Council data show ETF holdings have risen in every month this year except May, putting the metal on course for its strongest annual performance since 1979.
Earlier in the year, the advance also drew momentum from President Donald Trump’s push to reshape global trade, alongside concerns stirred by his comments about the Federal Reserve’s independence.
Investor positioning has been further boosted by the so-called “debasement trade”, as some sought to reduce exposure to sovereign bonds and the currencies they are priced in amid fears that swelling debt burdens could erode value over time.
After retreating from its previous peak in October, when the rally was seen as crowded and overheated, gold has rebounded quickly, and some banks argue the gains can carry into next year.
Goldman Sachs, among others, has forecast further upside in 2026, outlining a base-case target of around US$4,900 an ounce with risks skewed higher.
Spot gold rose 0.5% to US$4,467.57 an ounce by 8.20am in Singapore.
Silver was up 0.1% at US$69.09, close to the prior session’s record of US$69.4549.
Platinum and palladium also advanced, while the Bloomberg Dollar Spot Index slipped 0.1%.
Bloomberg
