Gold and Silver Hit Historic Peaks Amid Geopolitical Tensions and Fed Easing Expectations

On Monday, December 22, 2025, global precious metals markets witnessed a significant surge, establishing new price ceilings. This rally was a direct consequence of the complex interplay between macroeconomic pressures and escalating geopolitical instability. Spot gold trading on the COMEX in New York decisively breached the $4,400 per ounce threshold, peaking at an impressive $4,436.90. Silver, meanwhile, experienced an even more dramatic ascent, setting its own all-time high of $68.87 per ounce during peak trading. This simultaneous breakthrough signals a profound shift in investor sentiment, driving capital toward safe-haven assets amid rising global uncertainty.

The upward trajectory of these metals is underpinned by two primary drivers. Firstly, persistent geopolitical friction continues to fuel market anxiety. This includes ongoing flare-ups in the Middle East, compounded by new punitive measures imposed by U.S. President Donald Trump against Venezuela. Specifically, the announcement of a 'complete blockade' affecting all sanctioned oil tankers traveling to or from the nation has injected fresh risk premiums into the market. Secondly, market participants are increasingly factoring in anticipated shifts in the monetary policy of the U.S. Federal Reserve (Fed). Traders are now pricing in at least two cuts to the Fed's key interest rate throughout 2026. This expectation gained traction following the November U.S. inflation report, which showed the annual rate slowing to 2.7%. Furthermore, the Fed had already revised its 2026 PCE inflation forecast downward to 2.4% from 2.6% on December 10.

The performance metrics for 2025 are nothing short of remarkable. Gold has appreciated by nearly 70%, potentially marking its best year since 1979. However, silver has significantly outpaced gold, recording an approximate 138% gain over the same period. This divergence suggests that beyond the traditional appeal of gold as a store of value, silver's market dynamics are heavily influenced by industrial demand. Key sectors such as solar energy and electric vehicles are driving this consumption. The possibility of persistent supply deficits in the silver market is also likely contributing to the premium. It is noteworthy that silver's previous record highs, set in 1980 and 2011 around the $49 per ounce mark, have been substantially eclipsed this year.

During its December meeting, the Federal Reserve already implemented a 25-basis-point rate reduction, bringing the target range to 3.50–3.75%. The median projection from Fed officials suggests a further reduction to 3.4% by the close of 2026, which equates to one additional 25-basis-point cut. Despite this, Fed Governor Christopher Waller indicated there remains a 'possibility' for even more accommodative policy. In contrast, monetary expectations in Russia have tightened; an analyst poll indicated that the average key rate for the Bank of Russia in 2026 is now expected to rise to 14.1%. Against this backdrop, the U.S. dollar has weakened against the Russian ruble, losing approximately 10% of its value relative to its competitors throughout 2025.

Trading activity on this record-setting day was concentrated on exchanges in New York (COMEX) and Singapore. In Singapore, spot gold was quoted at $4,386.32 per ounce, reflecting a 1.1% increase. Silver on the spot market climbed 3% from the prior session, reaching $67.5325. Consequently, the peak metal prices observed at the close of 2025 serve as a clear illustration of the diverging paths of U.S. monetary policy and persistent global instability, firmly cementing their roles as indispensable tools for hedging financial risk.