Gold and silver prices surged to fresh record highs on Friday, extending a strong year-end rally as investors rushed into safe-haven assets amid escalating geopolitical tensions and a weakening U.S. dollar. Precious metals benefited from heightened global uncertainty, thin holiday trading, and growing expectations of future monetary easing by the Federal Reserve.
Spot gold rose 0.6% to $4,506.76 per ounce, after touching an intraday record of $4,530.60. U.S. gold futures for February delivery climbed 0.7% to $4,537.55. For the week, gold prices were on track to gain nearly 3%, reflecting robust demand from investors seeking protection against geopolitical risks and macroeconomic volatility.
Silver outperformed gold, with spot silver prices surging more than 4% to a new all-time high of $75.14 per ounce. The metal was set to post a weekly gain of over 7%, supported by both safe-haven flows and strong industrial demand. Silver’s critical role in electronics, renewable energy, and clean technology continued to underpin its appeal alongside rising investment inflows.
Geopolitical developments played a central role in driving demand for precious metals. Market sentiment was rattled after the United States increased pressure on Venezuela’s oil exports, fueling concerns over supply disruptions and regional instability. Additional unease emerged after U.S. President Donald Trump stated that American forces had conducted strikes against militant targets in Nigeria, reinforcing fears of expanding global conflict risks.
The rally was further supported by persistent weakness in the U.S. dollar, which slipped against major currencies. Expectations that the Federal Reserve may begin easing monetary policy in 2026, as inflation cools and economic growth slows, have weighed on the greenback. Lower U.S. Treasury yields have also boosted non-yielding assets like gold and silver, as investors shift portfolios toward long-term stores of value.
With holiday-thinned liquidity likely to exaggerate price swings, analysts believe underlying fundamentals still point to continued strength in gold and silver heading into the new year, supported by geopolitical uncertainty, monetary policy expectations, and sustained investment demand.


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