Prime Highlight
- Global investors drove gold, silver, and platinum prices to new records due to thin year-end trading, geopolitical tensions, and expectations of U.S. interest rate cuts.
- Analysts expect gold to approach $5,000and silver $90 in early 2026 as momentum trading and safe-haven demand continue to push prices higher.
Key Facts
- Spot gold rose 6% to $4,505 per ounce, silver jumped 3.6% to nearly $74.60, and platinum surged 7.8% to about $2,393.
- Gold has gained nearly 72% in 2025, silver 158%, and platinum 165%, marking the strongest yearly rises in decades.
Background
Global precious metals markets saw a sharp rally on Friday as investors rushed into gold, silver, and platinum amid thin year-end trading, rising geopolitical tensions, and growing bets on U.S. interest rate cuts.
Spot gold climbed 0.6% to about $4,505 per ounce in early Asian trade, after hitting a record high above $4,530 earlier in the session. U.S. gold futures for February delivery rose 0.7% to around $4,535. Analysts said strong speculative buying and a weaker dollar pushed prices higher.
Silver outperformed gold, jumping 3.6% to nearly $74.60 per ounce after touching a lifetime high of $75.14. Platinum surged 7.8% to about $2,393, after crossing $2,429 during the day. Palladium gained 5.2% to $1,771, extending its weekly rally.
Kelvin Wong, senior market analyst at OANDA, said momentum traders have driven the rally since early December. He added that thin liquidity, expectations of extended U.S. rate cuts, and fresh geopolitical risks have combined to lift precious metals to new records. Wong said gold could move closer to the $5,000 mark in the first half of 2026, while silver may approach $90.
Gold has logged its biggest yearly rise since 1979, gaining nearly 72% so far in 2025. The rally has drawn strength from Federal Reserve easing, steady central bank buying, higher ETF holdings and a shift away from the dollar. Silver has soared 158% this year on strong industrial demand and supply gaps.
Markets now price in at least two U.S. rate cuts next year, which supports non-yielding assets like gold. Rising global tensions, including U.S. actions linked to Venezuela and Nigeria, have also increased safe-haven demand.
Platinum and palladium, used in vehicle emission systems, have surged due to tight supply and tariff worries. Platinum is up about 165% this year, while palladium has gained over 90%.
