Gold and Silver Hit All-Time Highs as Fed Rate Cut Bets Compress Carrying Costs

Gold reached $4,441.92 per ounce on December 22, 2025—a record—while silver breached $100 for the first time ever. Both moves were driven by falling real yields as markets priced in Federal Reserve rate cuts. When nominal rates are expected to fall faster than inflation adjusts, the opportunity cost of holding non-yielding assets like gold compresses, making them cheaper to own in carry-adjusted terms. Systematic and discretionary allocators responded by adding exposure simultaneously.