Gold extended its record-breaking run on Tuesday, surging past $4,500 per ounce for the first time in history. The precious metal opened at $4,481.80 on December 23—its first-ever open above $4,400—and continued climbing to fresh all-time highs. With the move, gold has now set 50 new records in 2025 alone.

The Historic Numbers

Gold's 2025 performance has been nothing short of extraordinary:

  • 2025 gain: Approximately 70%, the best annual return since 1979
  • Price milestones: Broke through $3,000 and $4,000 per ounce for the first time this year
  • Record sessions: 50 all-time highs set in 2025
  • December surge: Up 2.4% just this week, topping the previous October record of $4,381

Silver's Even Bigger Rally

While gold grabs headlines, silver has been the even better trade. The white metal jumped above $70 per ounce this week for the first time ever, capping a roughly 140% gain for the year—nearly double gold's impressive return.

The silver surge reflects both its safe-haven appeal and its industrial uses in solar panels and electronics.

What's Driving the Rally

Geopolitical uncertainty: Rising tensions, including the U.S. blockade of Venezuelan oil tankers and ongoing concerns about global stability, have revived the traditional "flight to safety" trade.

Federal Reserve policy: Three consecutive Fed rate cuts since September have reduced the opportunity cost of holding non-yielding gold. Traders are betting the Fed will continue cutting in 2026, providing further tailwinds.

Dollar weakness: The U.S. dollar has depreciated roughly 11% against major currencies in the first half of 2025—the steepest decline in over 50 years. Gold, priced in dollars, benefits directly from currency weakness.

Central bank buying: Foreign central banks, particularly in China and emerging markets, continue to accumulate gold reserves as a hedge against dollar exposure and geopolitical risk.

ETF Inflows Surge

Gold-backed exchange-traded funds have seen massive inflows in 2025, reversing the outflows of 2024. European investors alone have added over $6.5 billion to gold ETCs this year. The institutional bid reflects a broader allocation shift toward hard assets.

2026 Outlook

Wall Street analysts remain bullish:

  • Goldman Sachs: Base case of $4,900 per ounce by December 2026, with upside risks
  • Deutsche Bank: Prices could approach $5,000 during 2026
  • Capital Economics: More cautious, sees potential pullback to $3,500 by year-end 2026

The bull case rests on continued geopolitical uncertainty, central bank gold buying, and deeper Fed rate cuts if growth slows.

How to Invest

For investors considering gold exposure:

  • Physical gold: Coins and bars offer direct ownership but require storage and insurance
  • Gold ETFs: GLD and IAU provide liquid, low-cost exposure
  • Mining stocks: Offer leveraged exposure to gold prices but carry company-specific risks

Most advisors recommend gold represent 5-10% of a diversified portfolio—enough to provide hedge value without overweighting a non-productive asset.

The Bottom Line

Gold's surge past $4,500 caps a historic year for the precious metal. A nearly 70% gain—the best since 1979—reflects a perfect storm of geopolitical fear, accommodative monetary policy, dollar weakness, and growing concerns about sovereign debt. Whether the rally extends into 2026 depends on whether these conditions persist. For now, gold has reclaimed its crown as the ultimate safe haven, and investors are paying record prices for that security.