By: Economy Middle east

Gold prices jumped to a record high in early Asian trading on Friday, supported by strong safe-haven demand and growing expectations that the U.S. Federal Reserve will deliver further interest rate cuts.

In the UAE, gold rates posted notable gains, with 24-carat gold rising AED3.5 to AED543.25 and 22-carat gold gaining AED3.25 to AED503. Additionally, 21-carat gold increased by AED3.25 to reach AED482.25, while 18-carat gold edged up AED2.75 to AED413.5.

Meanwhile, 14-carat gold gained AED2.25 to AED322.5.

Globally, spot gold gained 0.87 percent to $4,518.59 an ounce by 6:30 GMT, after hitting an all-time high of $4,530.60 earlier in the session. Meanwhile,  U.S. gold futures for February delivery climbed 0.94 percent to $4,545.00.

Spot silver touches a record high of $75.14

Gold, silver and platinum prices climbed to record highs on Friday, driven by speculative momentum and thinning year-end liquidity, as markets priced in additional U.S. interest rate cuts and rising geopolitical tensions.

Spot silver surged 4.24 percent to $74.96 an ounce, after touching a record high of $75.14 earlier in the session.

“The recent run has been driven by gold’s safe-haven status amid geopolitical tensions between the U.S. and Venezuela. Additionally, traders anticipate two interest rate cuts next year, further enhancing the attractiveness of precious metals,” said Vijay Valecha, chief investment officer, Century Financial.

Gold gains 72 percent in 2025 as silver surges 158 percent

Gold prices have posted a robust rally this year, marking their largest annual gain since 1979, driven by Federal Reserve policy easing, geopolitical uncertainty, strong central bank purchases, rising ETF holdings and ongoing de-dollarization.

Silver has outperformed even more, soaring 158 percent year-to-date, well above gold’s nearly 72 percent gain, supported by structural supply deficits, its designation as a U.S. critical mineral and strong industrial demand.

With markets anticipating two U.S. interest rate cuts next year, non-yielding assets such as gold are expected to remain well-supported in a low-rate environment.

“Despite the strong momentum, gold is not without risks heading into 2026. In the very near term, the most tangible risk comes from positioning and flows. The strong gains in gold and silver during 2025 mean that the upcoming rebalancing of major commodity indices—not least the precious-metal-heavy Bloomberg Commodity Index—will trigger significant selling in futures markets. This process, running for five days from 8 January, could generate notable short-term volatility. How well the market absorbs this selling will likely help determine price direction during the first quarter,” said Ole Hansen, head of commodity strategy, Saxo Bank.

“Looking beyond short-term risks, several scenarios could still push gold prices to new highs and towards our end-2026 target of $5,000,” he added.

Geopolitically, the U.S. is concentrating on enforcing a two-month “quarantine” on Venezuelan oil. Additionally, on Thursday, it carried out strikes against Islamic State militants in northwest Nigeria in response to attacks on local Christian communities.

Platinum surges to record high of $2,429.98

Spot platinum jumped 7.8 percent to $2,393.40 an ounce after earlier hitting a record high of $2,429.98, while palladium rose 5.2 percent to $1,771.14, following a three-year peak in the previous session. All precious metals are set for weekly gains.

Platinum and palladium, key components in automotive catalytic converters, have surged due to tight supply, tariff uncertainties and a rotation of investment demand from gold, with platinum up around 165 percent and palladium climbing more than 90 percent year-to-date.