Precious metals markets recorded an unprecedented historical jump at the start of the week's trading, as gold and silver prices soared to new record levels, driven by increasing investor confidence and financial market expectations that the Federal Reserve (the US central bank) will cut interest rates twice during the next year.
Record numbers for the yellow metal
Trading on Monday was frantic, with gold futures for February 2026 rising by 1.1%, adding about $47.50 to settle at $4,434.80 an ounce, after touching $4,442.80 during the session, the highest level ever recorded for the most active futures contract.
In spot trading, gold surpassed the $4,400 mark for the first time in history, rising 1.4% to $4,397.16 per ounce, after reaching a record high of $4,400.29. This meteoric rise reinforces gold's status as a preferred safe haven during times of major economic shifts.
Silver and other metals are catching up
Gold wasn't alone in this surge; silver also performed exceptionally well, with March 2026 futures jumping 2.8% to $68.78 an ounce, after touching a high of $69.525. The spot price of silver also rose by about 2.55%, reaching $68.86 an ounce.
In a related context, prices of other industrial and precious metals rebounded, with platinum jumping 3.35% to $2,045.11, its highest level in more than 17 years, while palladium climbed 4.3% to $1,787.56, its highest level in almost three years.
Economic context and interest rate impact
This broad rally in precious metals reflects the traditional inverse relationship between interest rates and gold's appeal; lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors than bonds or bank deposits. With the dollar index holding steady at 98.62, markets appear to have already priced in the future direction of US monetary policy.
historic annual performance
Data indicates that gold is on track for its biggest annual gain since 1979, having risen by approximately 67% since the beginning of the year, surpassing significant psychological barriers ($3,000 and $4,000) in a single year. In contrast, silver has outperformed silver, achieving a staggering 138% jump since the start of the year, fueled by strong investment inflows and persistent supply constraints. This underscores its growing importance not only as a precious metal but also as a vital component in modern technology industries.
