Gold prices shattered records on Monday, climbing above $4,400 per ounce for the first time, while silver surged to $69, its highest level in decades.

The dramatic rally in precious metals is being driven by expectations of aggressive Federal Reserve rate cuts, a weakening U.S. dollar, escalating geopolitical tensions, and record central bank purchases.

Spot gold reached $4,376.92 (+0.79% daily), marking an extraordinary ~67% gain since January 2025. Silver rose nearly 3% to $69.09, capping a 130%+ yearly surge—its strongest performance in decades.

Key Drivers of the Rally

• Monetary Policy: Markets anticipate Fed easing amid cooling inflation and growth concerns.
• Dollar Weakness: The DXY index sits at multi-year lows, boosting bullion’s appeal as a store of value.
• Geopolitical Risks: Conflicts in Ukraine and the Middle East, plus trade uncertainties, fuel safe-haven demand.
• Central Bank Buying: Emerging markets (China, India, Turkey) lead record gold purchases for reserve diversification.
• Industrial Demand (Silver): Booming solar, electronics, and EV sectors tighten supply due to silver’s critical conductivity.

Observers warn the parabolic moves reflect deeper anxieties: potential stagflation, erosion of confidence in fiat currencies, and dollar weakness. Physical markets are straining, with premiums rising and delivery delays reported, while ETF inflows hit records.

Outlook: Consensus forecasts see gold reaching $4,500–$5,000 and silver $75–$80 by mid-2026 if current trends persist, though volatility remains likely as policy shifts unfold.