On 11 and 12 December 2025, with a weaker US dollar and a Federal Reserve rate cut, gold reached a seven-week high and topped USD 4,300 an ounce.

  • Spot gold reached USD 4,311.73
  • Weekly gain of about 2.7%
  • Close to the all-time high set in October

The Fed’s decision

  • The Fed cut rates by 25 basis points to a 3.5–3.75% range — its third cut this year
  • Lower rates increase the appeal of non-yielding assets such as gold
  • Jerome Powell said future decisions will be made “meeting by meeting”

The dollar’s role

The US dollar index fell to its lowest since mid-October. A weaker dollar makes gold cheaper for foreign investors and boosts global demand.

Silver sets a record

  • Silver price: USD 62.88
  • Annual gain: 113%

Drivers of silver’s rise include strong industrial demand, falling inventories and its inclusion on the US critical minerals list. Some analysts see USD 100 as plausible in 2026.

Strong central bank demand

  • Central bank purchases in October: 53 tonnes (36% more than September)
  • Purchases in 2025 through end-October: 254 tonnes
  • Poland was October’s largest buyer with 16 tonnes

The National Bank of Poland has raised its target for gold’s share of FX reserves to 30%.

Outlook

  • ING forecast for 2026: average USD 4,325
  • Gold’s annual gain: nearly 60%

Continuing geopolitical tensions, inflation concerns and central bank demand have kept gold’s bull market intact.