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

Core Insights - Gold and silver prices have reached record highs due to various political and economic factors, including U.S. tensions with Venezuela, speculation on Federal Reserve rate cuts, and overall economic insecurity [1][3] - The rise in gold prices is attributed to the "debasement trade," where investors seek a hedge against increasing global G7 debt, while silver's demand is driven by its industrial uses, particularly in data centers, solar panels, and electric vehicles [1][4] Price Movements - As of December 22, gold bullion was up over 1.9% to $4,472.20, and silver was up about 3.4%, nearing $70 an ounce, marking the highest levels since 1979 [3] - In 2025, gold prices surged nearly 70% according to Bloomberg [1] Federal Reserve Impact - The Federal Reserve's recent interest rate cut of 25 basis points, the third cut in 2025, has historically led to increases in gold prices, with notable gains of 31% in 2000, 39% in 2007, and 26% in 2019 within 24 months [4][5] - Rate cuts are typically aimed at stimulating economic growth, making gold more attractive as other investments yield lower returns [5] Future Predictions - Goldman Sachs predicts that gold could reach $4,900 an ounce by December 2026, while oil prices are expected to decline mid-year [6]