Gold and silver prices reached record highs today. Here’s what’s next for 2026

Gold and silver prices rose to record highs in early trading on Monday, spurred on by a confluence of a few different political events and economic factors, including tensions over the U.S. seizing of possibly another oil tanker from Venezuela, speculation of future Federal Reserve rate cuts, overall economy insecurity, and bets on U.S. monetary policy in 2026.

In 2025, gold has surged by nearly 70%, according to Bloomberg.

Here’s what to know.

What happened today?

At the time of this writing, in midday trading on December 22, gold bullion (GC=F) was up over 1.9% to $4,472.20 and silver (SI=F) was up about 3.4%, heading toward $70 an ounce, making both headed for highest levels since 1979, per Bloomberg.

How did the Fed rate cut affect gold and silver prices?

Earlier this month, the Federal Reserve cut interest rates by 25 basis points, the third cut in 2025, driving federal rates to their lowest in three years and pointing to possible further cuts in the year ahead.

Historically, gold prices have risen following U.S. Federal Reserve interest rate cuts, with notable gains of 31% in 2000, 39% in 2007, and and 26% in 2019 (all within 24 months).

That’s because those rate cuts are often an attempt to jump-start slowing economic growth, and gold is considered a safe haven in times of economic uncertainty.

In this case, gold became more appealing as bonds and other fixed-income investments yielded lower investments, according to Investopedia.

Will gold hit $5,000 an ounce in 2026?

Now the question is, will gold break the $5,000-an-ounce threshold next year?

Nobody can say for sure, but as the bullion inches upward, Goldman Sachs is predicting gold will hit $4,900 an ounce by December 2026, and oil prices will decline to a low mid-year.

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