Gold prices have surged to a new all-time high, climbing above $4,400 an ounce for the first time as strong investor demand for safe-haven assets continues.

The precious metal reached a peak of $4,420 on Monday before easing slightly. Analysts attribute the rally largely to expectations that the US Federal Reserve will cut interest rates further next year, making non-interest-bearing assets such as gold more attractive.

Gold began the year trading at around $2,600 an ounce, but a combination of geopolitical tensions, trade uncertainties linked to former President Donald Trump’s tariff policies, and shifting interest rate expectations has driven prices sharply higher. So far in 2025, gold has gained more than 68 percent — its strongest annual performance since 1979, according to BullionVault’s Director of Research, Adrian Ash.

Mr Ash said persistent concerns around global conflicts, trade disputes and pressure on the US Federal Reserve have significantly boosted demand for precious metals.

“The precious metals market suggests that President Trump has triggered a major shift. Between trade wars, geopolitical tensions and attacks on the Fed, gold has surged dramatically this year,” he noted.

Lower interest rate expectations tend to reduce returns on bonds, prompting investors to seek alternatives such as gold and silver for both returns and portfolio diversification. Market consensus currently suggests the US could cut interest rates twice in 2026.

Another key driver has been increased gold purchases by central banks worldwide. According to Goldman Sachs, central banks are expanding their physical gold reserves to hedge against economic uncertainty, reduce reliance on the US dollar, and diversify their holdings — a trend expected to continue into 2026.

A weaker US dollar has also supported the rally by making gold cheaper for overseas buyers.

Other precious metals have enjoyed strong gains as well. Silver prices hit a record $69.44 an ounce on Monday and are up about 138 percent year-to-date. Platinum has reached a 17-year high, outperforming gold on the back of strong demand and supply constraints. Unlike gold, silver and platinum also benefit from widespread industrial use, further supporting prices.

Meanwhile, oil prices rose modestly on Monday after the US announced a “blockade” of sanctioned oil tankers. Brent crude gained 53 cents to $60.99 a barrel, while US crude rose 1.6 percent to $57.40. Despite the uptick, both benchmarks are on track to end 2025 lower than their levels at the start of the year.