Gold tops $4,500 with silver and platinum also hitting all-time highs

• Gold rose 0.1% to $4,492.51 from a record high of $4,525.19.
• Silver gains $72.27 to hit an all-time high of $72.70.
• Little liquidity at the end of the year exaggerates recent price movements.

Gold broke above $4,500 an ounce for the first time on Wednesday, while silver and platinum also climbed to record highs as investors piled into the precious metals on safe-haven demand and expectations that US interest rates will be cut further next year.

Spot gold was up 0.1 percent at $4,492.51 an ounce at 0359 GMT, after touching a record high of $4,525.19 earlier in the session. U.S. gold futures for February delivery rose 0.3 percent to a record high of $4,520.60.

Silver rose 1.2% to $72.27 an ounce after hitting an all-time high of $72.70 earlier, while platinum rose 3.3% to $2,351.05 after hitting a record high of $2,377.50.

Palladium rose nearly 2% to $1,897.11, its highest level in three years.

“Precious metals have become more of a speculative narrative around the idea that, with deglobalization, you need an asset that can act as a neutral intermediary, without dominant risk, particularly as US-China tensions persist,” said Ilya Spivak, head of global macro at Tastylive.

Little liquidity at the end of the year exaggerated recent price moves, but the broader theme was likely to hold, with gold targeting $5,000 over the next six to 12 months and silver potentially moving toward $80 as markets respond to key psychological levels, Spivak added.

Gold has risen more than 70% this year, its biggest annual gain since 1979, on safe-haven demand, expectations of U.S. interest rate cuts, strong central bank purchases, de-dollarization trends and ETF inflows, with traders pricing in two rate cuts next year.

Silver has jumped more than 150% over the same period, outperforming gold on strong investment demand, its inclusion on the US critical minerals list and a buoyant market.

Gold and silver are “hitting the gas pedal this week” with new record highs, reflecting their appeal as stocks of value amid expectations of lower U.S. interest rates and lingering global debt, said Tim Waterer, chief market analyst at KCM Trade.

Platinum and palladium, used primarily in automotive catalytic converters to reduce emissions, have rallied this year on tight mine supply, price uncertainty and a shift from investment demand to gold, with platinum up about 160% and palladium gaining more than 100% year-to-date.

“What we’re seeing in platinum and palladium is largely covered,” Spivak said, adding that the delicate nature of these markets leaves them vulnerable to sharp swings, even as they broadly track gold, once liquidity returns.