Gold Soars as U.S. Treasury Yields Decline, Driving Investor Demand

Gold prices climbed Monday as U.S. Treasury yields dropped, making the precious metal more attractive to investors. Meanwhile, silver held steady after hitting record highs last week, capping off what's been an exceptional year for precious metals.

Spot gold rose 0.3% to $4,313.08 per ounce by 0119 GMT, reaching its highest level since October 21. The metal has surged over 64% since the start of the year, breaking multiple records and becoming one of 2025's top-performing assets.

U.S. gold futures also gained ground, climbing 0.39% to $4,344.80 per ounce. The rally got support from a slight decline in 10-year Treasury yields, which makes non-yielding gold more appealing to investors looking for returns.

Silver's story is even more dramatic. The metal stayed flat at $62.02 per ounce after hitting a record $64.64 on Friday before closing sharply lower. But stepping back, silver gained about 6% last week and has soared 115% year-to-date.

Three factors are driving silver's massive run: shrinking inventories, strong industrial demand, and its recent inclusion on the U.S. list of critical minerals. That designation signals how important the metal has become for everything from electronics to solar panels.

For investors and traders, these moves reflect broader economic currents. When Treasury yields fall, precious metals become more competitive since they don't pay interest. Central bank policies and inflation concerns also play a role in pushing money toward traditional safe havens like gold.

Other precious metals showed mixed results. Platinum dipped 0.2% to $1,741.82, while palladium gained 0.4% to $1,493.40 per ounce. But neither has matched the spectacular gains seen in gold and silver this year.

The precious metals rally highlights how investors are positioning themselves amid economic uncertainty. With both gold and silver hitting new highs, the question becomes whether these gains can hold or if profit-taking will pull prices back down.