Gold crossed $4,400 per ounce for the first time on Monday, driven by expectations of U.S. interest-rate cuts and continued safe-haven buying.

Spot gold rose 2% to a record $4,426.66 per ounce as of 1313 GMT.

U.S. gold futures for February delivery gained 1.5% to $4,451.60.

Big yearly gains for gold and silver

Bullion is up nearly 68% this year, its biggest annual rise since 1979.

Reuters cited strong central bank buying, safe-haven flows, and lower interest rates as key drivers.

Spot silver climbed 3.1% to $69.18 after hitting a record $69.44 earlier in the session.

Silver is up 139% year-to-date, supported by a supply deficit, industrial demand, and investment buying.

Analysts point to rates and inflation expectations

UBS analyst Giovanni Staunovo said:

“Lower rates are supporting the demand for real assets like gold and silver. But we also have copper at a record high, indicating a desire by investors to hold exposure to broad commodities, likely due to expectations that inflation could stay higher for longer.”

Federal Reserve Governor Stephen Miran said on Friday the central bank should cut interest rates because inflation has cooled and policy needs to offset risks to the job market.

Dollar weakness and geopolitics

The U.S. dollar index edged lower and is on pace for its steepest annual decline since 2017, making gold cheaper for overseas buyers.

StoneX analyst Rhona O’Connell linked part of the move to geopolitics, citing President Trump’s reported use of the word “war” last week with respect to Venezuela.

Elsewhere, platinum jumped 5.4% to $2,079.25, its highest in more than 17 years.

Palladium rose 2.7% to $1,759.75, a near three-year high.