Gold prices rose sharply at the start of the week, reaching a new record. According to live pricing data, spot gold was trading around $4,420 per ounce, up more than 1.7 percent on the day.

Weaker Dollar and Geopolitical Risks Support Gold

Market participants pointed to U.S. monetary policy expectations as a key driver. Anticipation of further interest rate cuts by the U.S. Federal Reserve lifted demand for safe-haven assets. Lower yields typically support gold, which does not offer interest income.

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A weaker U.S. dollar also supported prices. When the dollar falls, gold becomes cheaper for holders of other currencies, which tends to increase demand.

Ongoing geopolitical uncertainty added to the metal’s appeal, as investors sought protection against broader market risks, according to Reuters.

Kathleen Brooks, Research Director at XTB, noted that risk assets were also moving higher. She said, “Tech stocks are leading this ‘Santa Rally.’” She added, “Commodities are also surging.”

Referring to gold, she said, “The gold price hit a fresh record high on Monday and is above $4,400, as geopolitical concerns heat up and hopes grow that the Fed can continue to cut rates next year as US inflation moderates.”

She also noted that gold is “rounding off the strongest annual performance for the yellow metal in four decades.”

Gold price

One year ago: $2607

Now: $4382 pic.twitter.com/I87yy2gtm7

— The Spectator Index (@spectatorindex) December 22, 2025

Gold Outlook Remains Positive Long-Term

Despite the strong momentum, some analysts urged caution in the near term. They warned that lower trading volumes during the holiday period could increase volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term. Thin liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term can lead to sharper price swings in both directions, and a short-term pullback cannot be ruled out.

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Looking further ahead, longer-term forecasts remain broadly positive. Several strategists expect gold prices to move higher over the coming years, citing sustained central bank demand, geopolitical risks, and a gradual easing cycle in major economies as supporting factors.

For now, gold continues to draw support from a combination of macroeconomic and geopolitical forces. The move keeps the metal at the center of investor focus as the year draws to a close.