Gold climbed to a record $2,450 per ounce and silver reached $35.80 on heightened demand for safe-haven assets, driven by escalating U.S. fiscal deficits and uncertainty over the Federal Reserve's next leadership transition.
- Gold reached $2,450 per ounce, a record high in December 2025.
- Silver hit $35.80 per ounce, its highest level since 2011.
- U.S. fiscal deficits projected at $2.1 trillion for FY2026.
- Central banks added 450 tons of gold in Q4 2025.
- Gold ETF holdings rose 14% in December 2025.
- Major gold miners (NEM, GOLD) saw 15%-18% share gains.
Gold prices reached a new all-time high of $2,450 per ounce in early December 2025, marking a 12% increase from the previous year's close. Silver followed suit, spiking to $35.80 per ounce—the highest level since 2011—fueling a broad-based rally in precious metals. The surge comes amid growing investor concern over the sustainability of U.S. fiscal policy, with federal budget deficits projected to exceed $2.1 trillion in FY2026, up 18% from the prior fiscal year. Market participants are also closely monitoring the upcoming Federal Reserve chair transition, with three top contenders under active consideration. The uncertainty surrounding monetary policy direction has amplified demand for assets perceived as resilient to inflation and currency devaluation. Gold, in particular, has become a preferred hedge against both fiscal instability and potential shifts in interest rate policy. Physical demand in key markets, including China and India, rose by 27% year-over-year in Q4 2025, according to preliminary trade data, with central banks adding 450 tons of gold to reserves during the quarter—the highest quarterly total since 2010. ETF holdings of gold rose by 14% over the month, signaling strong institutional confidence in the metal’s long-term value retention. The rally has significantly impacted related equities. Shares of major gold miners such as Newmont Corporation (NEM) and Barrick Gold (GOLD) jumped 18% and 15% respectively over the week, while silver-focused producer Pan American Silver (PAAS) gained 22%. Analysts note that the metals' performance is increasingly decoupling from traditional macro indicators, reflecting a structural shift in investor behavior.