Gold, silver shatter records as investors rush to metals for safety

NEW YORK/LONDON: Gold surged past the $4,000 an ounce level for the first time on Wednesday, building on a record-breaking rally as broader geopolitical and economic uncertainty, as well as expectations of US interest rate cuts sent investors flocking to the safe-haven asset.

Read more: Trump tells Davos he will demand lower interest rates, oil prices

Silver also climbed to a record high on Wednesday, latching on to gold’s record streak as investors flocked to the metal.

Spot gold was up 1.8 per cent at $4,053.13 per ounce by 12:17 PM ET (1617 GMT). US gold futures for December delivery gained 1.8 per cent to $4,075.00. Silver gained 3.4 per cent to $49.42 per ounce, after hitting its all-time high of $49.57.

The Dollar is finished. pic.twitter.com/cuT4q1GuNP

— Spencer Hakimian (@SpencerHakimian) October 8, 2025

“Gold’s strength reflects an extremely positive macroeconomic and geopolitical background for safe-haven assets, plus concerns over other traditional safe havens,” said Matthew Piggott, director of gold and silver at Metals Focus.

MASSIVE GAINS

Gold, traditionally seen as a store of value during times of instability, is up 52 per cent year-to-date, after gaining 27 per cent in 2024. It is one of the best-performing assets of 2025, outpacing advances in global equity markets and bitcoin and losses for the US dollar and crude oil.

Silver was up more than 66 per cent so far this year, benefiting from the same factors driving gold’s rally as well as tightness in the spot market.

“The silver market continues to tighten, with rising lease rates, as Comex stocks scale record highs and amid India’s seasonal demand strength. The recent rally has been supported by hefty ETP inflows,” said Suki Cooper, Global Head, Commodities Research at Standard Chartered Bank.

The metals’ rally has been propelled by a combination of factors, including expectations of US interest rate cuts, mounting political and economic uncertainty, strong central bank buying, hefty inflows into ETFs and a weakening dollar.

“With these factors persisting into 2026, we fail to see any catalyst for gold to meaningfully retrace at present. Therefore, we expect gold to continue to push up throughout the year to attempt a challenge of $5,000/oz,” Piggott added.

US RATE CUTS

The US government shutdown entered its eighth day on Wednesday, delaying the release of key economic data and forcing investors to rely on non-government sources to assess the timing and scope of Fed rate cuts.

Read more: US interest rates unchanged, Trump says it is hurting the people

Markets are pricing in a 25-basis-point rate cut at the Fed’s upcoming meeting, with a similar reduction expected in December.

Also, global crises, such as the Middle East conflict and the war in Ukraine, have stoked demand for bullion, while political turmoil in France and Japan added to the flight to gold.

Globally, inflows into gold ETFs hit $64 billion year-to-date, according to data from the World Gold Council, with a record $17.3 billion in September alone.

A “fear of missing out” is also boosting the rally, analysts said.

On a technical basis, gold’s Relative Strength Index (RSI) stands at 88, indicating the metal is overbought.

HSBC on Wednesday raised its average silver price forecasts for 2025 to $38.56 per ounce and for 2026 to $44.50, citing expectations for high gold prices, renewed investor demand and anticipated volatile trading.

The momentum seeped into other precious metals as well, with platinum gaining 2.5 per cent to $1,659.04, while palladium climbed 7.3 per cent to $1,435.18, to its highest level since June 2023.