Gold and silver prices jumped to fresh record highs as investors rushed to safe-haven assets amid rising geopolitical tensions and a weaker U.S. dollar. The strong rally came during thin holiday trading, which further amplified price movements.
On Friday, spot gold rose about 0.6% to trade near $4,506 per ounce, after touching a record high of $4,530 per ounce earlier in the session. U.S. gold futures for February delivery also climbed, reaching around $4,537 per ounce. Overall, gold prices were on track to gain nearly 3% for the week, showing strong demand from investors seeking stability during uncertain times.
Silver saw an even sharper rise. Spot silver prices surged more than 4% to hit a new all-time high of $75.14 per ounce. For the week, silver was set to rise over 7%, outperforming gold. Analysts noted that silver benefited not only from its safe-haven appeal but also from strong industrial demand, especially from electronics and clean-energy sectors.
Rising global tensions
Geopolitical developments played a major role in pushing prices higher. Market sentiment turned cautious after the United States increased pressure on Venezuela’s oil exports, raising concerns about supply disruptions and regional instability.
Adding to investor worries, U.S. President Donald Trump said that American forces had carried out strikes against militant targets in Nigeria. These developments highlighted growing global risks and increased demand for assets like gold and silver, which are traditionally seen as safe during uncertain times.
Weak dollar supports metals
Another key factor behind the rally was the weakness in the U.S. dollar. The dollar slipped against major currencies as investors grew more confident that the Federal Reserve could begin cutting interest rates in 2026. Cooling inflation and slower economic growth have strengthened expectations of easier monetary policy.
A weaker dollar usually makes dollar-priced commodities cheaper for foreign buyers, boosting demand. At the same time, falling U.S. Treasury yields supported non-interest-bearing assets such as gold, as investors shifted money away from bonds and toward stores of value.
Analysts said that while price swings could remain sharp during the holiday period due to low liquidity, the overall outlook for gold and silver remains positive. Strong demand, global uncertainty, and expectations of lower interest rates are likely to keep precious metals supported as the new year begins.
