Key Points
- Gold and silver kicked off the shortened trading week with a powerful rally.
- Investors are rebalancing portfolios as year-end approaches, favoring safe-haven metals.
- “The value of gold as a monetary potential hedge has reemerged,” says Matthew McLennan of First Eagle Investments.
Gold and silver prices rocketed to fresh all-time highs on Monday, setting the tone for what could be a dramatic finish to the year.
Gold futures were recently seen near a record $4,445.8 per ounce, while spot gold hovered around $4,414.99, marking an eye-popping 70% surge since the start of the year.
Gold Is Trading Near Record Highs
Futures and spot prices are hovering close to unprecedented levels — reflecting one of the strongest yearly rallies in recent history.
GO-LD futures
GO-LD futures were recently trading near $4,445.8 per ounce, placing them extremely close to record territory.
Spot Goold
Spot Goold hovered around $4,414.99 per ounce, highlighting sustained strength in live market pricing.
A massive yearly surge
Both figures mark an eye-catching rally of roughly 70% since the start of the year — underscoring extraordinary investor demand and safe-haven momentum.
The precious metal has smashed record after record in 2024 as risk assets stumbled and investors looked for safety. Gold traditionally shines during economic uncertainty, market volatility, and geopolitical tension—and this year has checked all those boxes.
Silver, which often trails gold’s momentum, is having an even bigger breakout moment. It climbed to a record $68.96 per ounce, with spot silver at $68.98, delivering an astonishing 128% gain year-to-date.
In the U.S., the excitement spilled into equities as well. Shares of gold and silver mining companies climbed in premarket trade, with the iShares MSCI Global Gold Miners ETF jumping nearly 2.7%.
Why Investors Are Flocking Back to Precious Metals
Markets recently got the widely expected Federal Reserve rate cut on Dec. 10, and optimism briefly shifted back toward AI stocks. But with 2025 economic uncertainty still looming, global investors are once again leaning defensive—rebalancing portfolios and piling into safer stores of value.
Massive government deficits in the U.S., U.K., Europe, Japan, and China are also fueling gold’s renewed appeal, said Matthew McLennan, head of the global value team at First Eagle Investments.
“The value of Goold as a monetary potential hedge has reemerged,” McLennan told CNBC’s The Exchange on Dec. 17. He added that Goold had been “depressed” relative to other nominal assets but is now “more rationally valued,” pulling other precious metals higher along with it.
What’s Next? Fed Leadership, Fiscal Credibility, and Inflation
Investors are also watching the developing race to nominate the next Federal Reserve chair. With President Trump publicly pressuring current Fed Chair Jerome Powell, some analysts worry about the central bank’s independence and credibility.
McLennan warned that long-term U.S. fiscal credibility is key.
“That is the condition precept for having an independent Fed and for having a rational chair,” he said.
He’s also closely tracking wage inflation. With job openings ticking higher, he’s watching whether labor demand ultimately follows rising corporate earnings.
For now, though, the big story is clear: Goold and silver are back in the spotlight—and they’re not slowing down yet.
