Gold jewellery at a recent edition of Oroarezzo, Italy
By David Brough
LONDON – Gold prices hit a seven-week peak in mid-December, supported by a climate of falling U.S. interest rates and U.S.-Venezuela tensions.
Silver prices, up 112 percent this year, hit a record high of $64.64 per ounce on December 12, 2025, underpinned by rising industrial demand, tight inventories and the recent inclusion of the precious metal on the U.S. critical minerals list. After touching the peak, silver prices dropped almost 3 percent due to profit taking.
Gold stood at $4,299.29 per ounce, up 0.5%, after touching $4,327.31, its highest level since October 21, earlier in the session.
A leading driver of the buoyant precious metals complex was the latest 25 basis points U.S. interest rate cut by the Federal Reserve (Fed).
On December 10, the Fed, as expected, cut interest rates, bringing the Fed funds rate to a range between 3.50% and 3.75%.
“The Fed meeting in the middle of the week provided tailwinds,” wrote Commerzbank’s commodity analyst Carsten Fritsch.
“The 25 basis point interest rate cut had been expected and therefore came as no surprise.”
The outlook for a further loosening of U.S. monetary policy continued to underpin gold.
“Although there are signs of a pause at the next meeting in January, the door remains open for further interest rate cuts after that,” Fritsch noted.
Gold, which bears no yield, can outperform in an environment of low interest rates.
Many analysts expect two U.S. rate cuts in 2026, and are awaiting the U.S. non-farm payrolls report, a key indicator of economic activity, later in December.
(Disclaimer: Any opinions expressed in this article are solely those of the author and should not be construed as investment advice.)
