Gold extended its historic rally on Wednesday, surging past $4,200 per troy ounce for the first time ever as escalating U.S.-China trade tensions and growing expectations for further Federal Reserve rate cuts drove a global rush into safe-haven assets.
According to data from the Comex division of the New York Mercantile Exchange, December 2025 gold futures climbed 1.3% intraday to reach a record $4,206.80 per ounce, marking the metal’s third consecutive all-time high this month. Spot gold traded slightly lower at $4,192, holding near record territory.
The rally follows weeks of steady gains as investors price in two more rate cuts before year-end after the Fed’s recent 0.25% reduction. Analysts say the combination of policy easing, fiscal uncertainty, and trade friction between Washington and Beijing has reignited demand for tangible assets such as gold and silver.
Drivers Behind the Latest Breakout
The latest price surge came after President Donald Trump reaffirmed his plan to impose 100% tariffs on Chinese imports starting November 1, sparking a new round of retaliatory measures from Beijing, including export restrictions on key rare earth metals. The escalating rhetoric triggered broad volatility across equities and currencies, pushing investors toward traditional stores of value.
As previously mentioned in earlier reports, gold’s record-breaking rally began when it first crossed the $4,000 threshold earlier this month, followed by yesterday’s surge to $4,179 amid rate cut bets and trade tensions. Those consecutive milestones set the stage for today’s breakout above $4,200, as central banks accelerated purchases and ETF inflows continued to climb.
Analysts from Traders Union and Reuters noted that global central banks, particularly in China, Turkey, and India, remain key buyers as they diversify reserves away from the U.S. dollar. Meanwhile, macro funds have been increasing exposure to gold as a hedge against inflation persistence and market volatility.
Outlook: Analysts Lift 2026 Price Targets
Forecasts for gold continue to rise. Bank of America this week reaffirmed its $5,000 per ounce price target for 2026, citing “structural policy support” from large fiscal deficits, debt monetization, and central bank accumulation. Goldman Sachs and Societe Generale have also lifted their year-end 2026 targets to $4,900 and $5,000, respectively.
Technical indicators show next resistance around $4,235 per ounce, with short-term support at $4,095 and $3,940, according to Comex data. Momentum remains bullish as the metal records its ninth consecutive weekly gain, up more than 59% year-to-date – its strongest annual performance since the late 1970s.
Silver mirrored the move, rising above $54.20 per ounce, its highest level on record, while platinum and palladium also advanced on safe-haven flows.
Market strategists say gold’s latest milestone reflects a “perfect storm” of macro uncertainty, monetary easing, and investor repositioning. The key question now, they note, is whether the world’s most trusted hedge can sustain its climb as volatility spreads through global markets.
