Daijiworld Media Network – New York
New York, Dec 26: Gold and silver surged to fresh all-time highs on Friday as investors flocked to safe-haven assets amid escalating geopolitical tensions and a weakening US dollar, extending a strong year-end rally in precious metals.
Spot gold rose 0.6 per cent to trade at $4,506.76 an ounce by late evening trade, after touching a record peak of $4,530.60 earlier in the day. US gold futures for February delivery climbed 0.7 per cent to $4,537.55.
Gold prices were on track to gain nearly 3 per cent for the week, supported by rising global uncertainty and strong investor demand for protection against risk.
Silver outperformed gold, surging more than 4 per cent to hit a fresh record high of $75.14 an ounce. The metal was set to post weekly gains of over 7 per cent.
Geopolitical tensions provided a major boost to safe-haven buying. Market sentiment was rattled after the United States intensified pressure on Venezuela’s oil exports, sparking concerns over potential supply disruptions and wider regional instability.
Adding to the unease, US President Donald Trump said American forces had carried out strikes on militant targets in Nigeria, underscoring Washington’s readiness to engage militarily across multiple regions.
Silver mirrored gold’s rally, supported not only by its role as a safe asset but also by robust industrial demand, particularly from the electronics and clean-energy sectors. Thin holiday trading conditions, coupled with strong investment inflows and limited supply, further amplified price movements.
The rally was reinforced by continued weakness in the US dollar, which slipped against a basket of major currencies. The greenback has come under pressure amid growing expectations that the Federal Reserve could begin easing monetary policy in 2026 as inflation cools and economic growth slows.
Lower US Treasury yields have also lent support to non-yielding assets like gold, as investors reassess the outlook for interest rates and shift portfolios towards traditional stores of value.
With liquidity expected to remain thin through the holiday period, analysts cautioned that volatility could persist, though they added that underlying fundamentals continue to point to sustained strength in gold and silver heading into the new year.