Gold Hits Historic High Above $4,400 Amid Expectations of Fed Policy Easing

Global financial markets witnessed a significant surge in precious metal prices as 2025 drew to a close, signaling a notable shift in investor preferences. As of December 22, 2025, spot gold decisively breached the $4,400 per ounce threshold, establishing a new all-time record. This significant price milestone was driven by mounting anticipation of further monetary policy easing from the U.S. Federal Reserve (Fed), coupled with the perennial demand for safe-haven assets amidst ongoing geopolitical turbulence.

During trading sessions, the spot price for gold fluctuated between $4,383.73 and $4,391.92 per ounce, while futures contracts climbed as high as $4,415. The precious metals rally in 2025 highlighted a divergence in asset performance: silver experienced phenomenal growth, contrasting sharply with the weakness displayed by the leading cryptocurrency, Bitcoin. A key metric for the year was silver’s impressive 138% appreciation since the start of the year, pushing its peak near $69.44 per ounce. Platinum also participated in the upward trend, surpassing the $2,040 per ounce mark, as noted by analyst Mario Navfal.

Conversely, Bitcoin traded around $88,890, substantially below its own historical peaks, reflecting an annual decline of nearly 5% throughout 2025. The primary catalyst behind gold's ascent—which is projected to mark its strongest annual gain since 1979—is the prevailing macroeconomic climate influenced by the Fed’s actions. The central bank’s recent rate cut has intensified market expectations for continued policy accommodation into 2026. This environment traditionally boosts the appeal of non-yielding assets like gold.

Analysts, including those at TD Securities, had previously projected that the average price for gold could exceed $4,400 in the first half of 2026, contingent upon Fed easing and sustained purchasing by the official sector. Data from November 2025 indicated that the probability of a third 25-basis-point rate cut by the Fed before December of the following year was approaching 50%. Silver’s rapid appreciation, which outpaced gold in percentage terms for 2025 (138% versus gold’s 67%), was attributed to more than just monetary factors; structural shifts played a role. Specifically, the U.S. Geological Survey (USGS) classified silver as a critical mineral, which, combined with robust investment interest and persistent supply constraints, fueled its rally.

The stark contrast between the performance of precious metals and Bitcoin raises questions about the latter’s status as “digital gold.” Strategist Charlie Bilello provided comparative data illustrating that since the debut of the first spot Bitcoin ETFs in January 2024, gold has outperformed Bitcoin by 19% in returns. Meanwhile, major equity indices saw solid gains in 2025: the Nasdaq climbed 20.8% and the S&P 500 rose 16.4%. This underscores a rotation of capital away from speculative crypto assets toward traditional, tangible assets. This shift in investor sentiment, seeking security amidst monetary uncertainty, is further evidenced by central banks, such as the National Bank of Poland, actively expanding their gold reserves throughout the year.