Precious Metals Surge, Stocks and Crypto Tumble: Silver Breaks Records as Gold Eyes New Highs
Investors pivot to safe-haven assets amid Federal Reserve rate cut speculation and crypto volatility.
Financial markets painted a starkly divided picture on Monday. While digital assets and equities faced a sea of red, precious metals staged a rally. Investors, unnerved by volatility in the crypto sector and eager to front-run a potential Federal Reserve rate cut, piled into safe-haven assets. This rotation sent silver rocketing to unprecedented heights and pushed gold within striking distance of a new record.
The disparity in performance highlights a shift in risk appetite. Wall Street ended the day on a sour note, reflecting bearish sentiment across the board. The S&P 500 (SPX) index closed Monday down 0.5% at 6,812.63, while the Dow Jones Industrial Average (DJI) dipped 0.9% to close at 47,289.33. The tech-heavy Nasdaq Composite (IXIC) did not escape the selling pressure either, finishing the day down 0.38% at 23,275.92.
This gloom in equities contrasted sharply with the shine in the metals market. Gold (XAUUSD) rose as much as 0.8% to hit a six-week high of $4,269.20 per ounce. Silver (XAGUSD), capitalizing on the momentum, rose as much as 3.8% to hit an all-time high of $58.48. The white metal has now risen close to 100% so far this year, vastly outperforming other commodities.
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The Crypto Crash and the Safe Haven Rotation
While metals soared, the cryptocurrency market endured a severe correction. Bitcoin (BTCUSD) dropped as much as 6% and currently trades at just $86,580.81. The contagion spread rapidly to other major tokens, with Ethereum (ETHUSD) plummeting as much as 8.4% to $2,776.39, while Solana (SOLUSD) and XRP (XRPUSD) slid as much as 9% and 6%, respectively.
Market analysts point to a direct correlation between the flight from digital assets and the influx of capital into gold and silver. Maria Smirnova, chief investment officer at Sprott Asset Management, identified this trend clearly.
Smirnova told Yahoo Finance:
“The US dollar index is heading down, and the crypto sell-off is contributing to the precious metals rally.”
This rotation suggests that institutional money is moving toward perceived stability. The looming Federal Reserve meeting plays a massive role in this calculus. Traders have increased December rate-cut bets to an 87.2% probability, according to CME’s FedWatch tool, spurred by softer U.S. economic data and dovish remarks from Fed officials. Lower interest rates typically favor non-yielding assets like gold, as the opportunity cost of holding them decreases relative to bonds.
Further complicating the picture is the situation in Japan. Fears that a potential rate hike by the Bank of Japan could force investors to unwind positions funded by cheap yen, the so-called “carry trade,” added another layer of anxiety to global equity markets.
Wall Street’s Mixed Forecasts for Gold
The relentless upward march of bullion invites a pressing question from retail and institutional investors alike: Will gold hit $5000 an ounce in 2026?
Market sentiment around gold’s future remains mixed. The financial analysis account The Kobeissi Letter shared insights from a recent Bank of America (NYSE: BAC) survey, highlighting how divided professional investors are on gold’s trajectory through 2026. According to their analysis of the survey, only 5% of global fund managers believe gold will surpass $5,000 per ounce by the end of 2026. 34% expect prices to settle between $4,000 and $4,500, while 27% project a range of $4,500 to $5,000. Another 34% foresee prices dropping below $4,000, and some of them (26%) expect a decline into the $3,500 to $4,000 band.
However, other banking giants hold a more aggressive outlook. UBS recently raised its bullion price target to $4,500 per ounce by mid-2026, citing structural support for the metal as a key driver.
JPMorgan Chase (NYSE: JPM) forecasts gold surpassing $5,000 and climbing as high as $6,000 an ounce. The rapid upsurge in prices this year, rising over 50% over the past 12 months, has been on the back of large acquisitions by central banks. In the year through September, they have purchased 634 tons of bullion, reports Bloomberg, citing data from the World Gold Council. While that is less than the annual amount since 2022, which surpassed 1,000 tons, it still exceeds the 2016-2021 annual average.
JPMorgan sees this trend continuing and predicts that the price of gold could jump more than 25% by the end of 2026. That would take its price into the range of $5,200 to $5,300, according to Alex Wolf, the private bank’s global head of macro and fixed income strategy, as he stated in a recent note. Goldman Sachs (NYSE: GS) had a more modest outlook for the future of gold prices, but it was still forecasting that gold would hit $4,900 per ounce by December 2026. This central bank demand remains a pillar of the bull case.
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Mining Stocks and Market Leverage
Despite the surge in spot prices, mining stocks showed mixed results on Monday, reflecting the broader equity market sell-off. However, analysts at Bank of America see significant opportunity in specific names. They identified companies like Kinross Gold (NYSE: KGC) and SSR Mining (NASDAQ: SSRM) as offering the greatest “leverage” to rising metal prices.
In Monday’s trading, Kinross Gold closed at $28.34, up 0.82%, showing resilience against the broader market drop. Conversely, SSR Mining stumbled, closing at $22.46, down 3.52%. Other producers also saw varied performance. Iamgold (NYSE: IAG) dipped 1.03% to $15.38, while Centerra (NYSE: CGAU) ended the session flat at $13.28. B2Gold (NYSE: BTG) slipped 0.43% to $4.60, and Eldorado Gold (NYSE: EGO) closed at $31.27, down 0.13%.
Silver miners attracted significant attention due to the white metal’s record-breaking run. Fresnillo plc (OTC: FNLPF) surged, closing Monday at $37.40, up 6.55%. Pan American Silver (NYSE: PAAS), which was up as much as 2.5% early in the day, gave back some of its gains to close up 0.9% at $46.08. Coeur Mining (NYSE: CDE), which rose as much as 3.5%, couldn’t hold its intraday gains, closing down 1.8% at $16.96.
Corporate news also drove price action. Barrick Gold (NYSE: B) (TSX: ABX) stock rose as much as 4.6% on Monday after the company announced it is exploring an initial public offering for its North American gold assets. Barrick closed Monday at $42.33, up 2.39%. This move highlights how major producers actively seek ways to unlock value for shareholders in this high-price environment.
David Meger, director of metals trading at High Ridge Futures, summarized the technical landscape for investors navigating this volatility.
Meger noted:
“We still view gold and silver in a strong sideways to higher uptrend.”
As the week progresses, all eyes turn to the upcoming economic data. With the Fed’s decision looming and global tensions simmering, the tug-of-war between risk assets and safe havens shows no sign of ending.
Gold & Silver FAQs:
How much is 1 oz of Gold at today’s prices?
As of December 2, 2025, Gold last traded at $4,212.22.
Which country’s central bank holds the largest Gold reserves?
Investors often wonder which nations hold the most bullion. The data remains clear:
- United States: Holds the top spot with 8,133.5 tonnes, a figure that has remained consistent for decades.
- Germany: Sits in second place with 3,350 tonnes.
- Italy: Comes in at third with 2,452 tonnes.
- France: Holds the fourth spot with 2,437 tonnes.
How much is 1 oz of Silver at today’s prices?
As of December 2, 2025, Silver last traded at $57.20.
Which countries have the largest Silver reserves?
Here are the countries with the largest economically mineable supply of silver:
- Peru: Holds the world’s largest silver reserves with 140,000 tonnes.
- Australia: Comes in at number two with 94,000 tonnes.
- Russia: Sits in third with 92,000 tonnes.
- China: Holds down the fourth spot with 72,000 tonnes.
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