Gold prices hit a historic high, exceeding $4440, as geopolitical risks and liquidity easing drive up safe-haven assets.

2025-12-23 01:30:35

Source: BlockMedia Original Title: “70% surge in a year”… Gold price at $4440, 'digital gold' has been suppressed. Original Link: On the 22nd, the spot gold price in New York hit a historical high, breaking through 4,440 dollars per ounce during the session, and finally closing at 4,436.29 dollars, up 2.3% from the previous day, an increase of nearly 98 dollars. It has accumulated a rise of 5.36% this month, and since the beginning of the year, the increase has reached 69.05%. Compared to the price of 2,606 dollars at the end of last year, it has risen over 70% in just over a year.

Main drivers of gold price increase:

Central Bank Policy Expectations: The Federal Reserve is implementing an accommodative monetary policy, recently restarting a monthly purchase program of $40 billion in short-term bonds, injecting liquidity into the system, supporting the decline in real interest rates, and providing medium- to long-term upward momentum for gold prices.
Geopolitical Risks Intensify: The U.S. Coast Guard intercepted oil tankers in Venezuelan waters, raising concerns in the market about supply chain disruptions; Ukraine attacked Russian shadow fleet tankers in the Mediterranean, with risks emerging simultaneously in the Middle East and Europe.
Federal Reserve Personnel Expectations: President Trump has nominated a dovish candidate for the Federal Reserve Chair, and the market expects policies to be more accommodative.

Other precious metals and commodities performance:

Silver prices rose in sync, reaching a new high of $69.44 during the session, closing at $68.55, an increase of 2.1%. Supply concerns and a shortage of silver inventory in China supported prices. The crude oil market was also affected by geopolitical factors, with West Texas Intermediate (WTI) rising 2.03% to $57.67 per barrel, and Brent crude up 2% to $61.68 per barrel.

Central banks worldwide boost demand:

The People's Bank of China increased its gold reserves by 30,000 ounces to 74.1 million ounces last month. According to data from the World Gold Council, central bank gold purchases worldwide reached 220 tons in the third quarter, a 28% increase compared to the previous quarter.

Market Outlook:

Although the decline in trading volume near the end of the year may trigger some profit-taking, the market generally believes that the medium-term upward trend remains valid. Trump's Federal Reserve appointments and important economic data in January will become key turning points for gold price trends.

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