Gold prices set a new record

Traders are betting that the Federal Reserve will cut interest rates twice in 2026. Lower rates are generally favorable for precious metals, which do not bear interest, according to Bloomberg.

Geopolitical tensions have also boosted the appeal of gold and silver as safe-haven assets.

The US has tightened its oil blockade against Venezuela, increasing pressure on President Nicolas Maduro's government, while Ukraine has attacked an oil tanker from Russia's shadow fleet in the Mediterranean for the first time.

Both precious metals are approaching their strongest annual growth since 1979.

Trump's aggressive moves to reshape global trade, as well as his threats to the independence of the US central bank, added fuel to the rapid growth earlier this year.

Investors have also played an important role in the rise in gold prices, partly thanks to so-called devaluation trading — the abandonment of sovereign bonds and the currencies in which they are denominated due to fears that their value will decline over time due to rapidly rising debt levels.

Prices for other precious metals have also risen. Silver rose 3.4% — reaching a record high of just under $70 an ounce — while palladium rose 5%. Platinum rose for the eighth consecutive day and traded above $2,000 for the first time since 2008.

Gold rebounded quickly after falling from its peak in October, when growth was considered overheated, and now has every chance of maintaining these gains next year.

Goldman Sachs Group Inc. is one of several banks forecasting further price increases in 2026, issuing a base case scenario of $4,900 per ounce with upside risks.

Photo: Pixabay.