Gold, silver and platinum surge to fresh peaks after Christmas closure
Gold climbed to a fresh record before easing, while silver and platinum also set new highs in a late-year market buoyed by speculation and rate-cut bets.
- Gold, silver, and platinum surged to new all-time highs after markets reopened on December 26, with gold reaching US$4,530.60, silver US$75.14, and platinum US$2,429.98 per ounce.
- The rally was driven by a combination of momentum-based speculation, thin year-end trading liquidity, and expectations that the U.S. Federal Reserve will continue cutting interest rates.
- A softer U.S. dollar and rising geopolitical tensions also contributed to the price jump as investors sought the safety of precious metals.
- The surge concludes a strong year for the metals, with gold up nearly 72%, silver 158%, and platinum about 165% year-to-date, supported by factors like central bank buying and strong industrial demand.
Global precious metals jumped to fresh record highs on Friday, (December 26), after markets reopened following the Christmas holiday, driven by momentum-based speculation, thin year-end liquidity and expectations that the Fed (US Federal Reserve) will keep cutting interest rates next year amid rising geopolitical tensions.
Spot gold climbed as much as 1.2% to a new all-time high of US$4,530.60 per ounce before easing to around US$4,504.79 by 11.23am.
US gold futures for February delivery rose 0.7% to US$4,535.20.
Spot silver surged to a fresh record of US$75.14 per ounce before pulling back to around US$74.56 in late morning trade, still up about 3.6%.
Spot platinum jumped as much as 7.8% to US$2,393.40 per ounce after touching an intraday record of US$2,429.98.
Palladium rose 5.2% to US$1,771.14 after hitting a three-year high the previous day.
Overall, all major precious metals were on track to finish the week higher.
Kelvin Wong, a senior market analyst at OANDA, said the rally in gold and silver since early December has been powered by momentum and speculative positioning, amplified by thin year-end liquidity, expectations that US rates will stay lower for longer, a softer US dollar and renewed geopolitical risks, together pushing prices to new peaks.
Looking to the first half of 2026, Wong said gold could move closer to the US$5,000 level, while silver may have scope to reach around US$90.
Gold has surged nearly 72% this year, its strongest annual rise since 1979, supported by easier Fed policy, geopolitical uncertainty, strong central-bank buying, increased ETF (Exchange Traded Fund) holdings and a broader push to reduce reliance on the US dollar.
Silver has climbed 158% year-to-date, outpacing gold on structural supply tightness, its designation as a critical mineral in the United States and robust industrial demand.
Platinum and palladium, widely used in the automotive industry, have also rallied sharply on tight supply, tariff uncertainty, and a rotation of investment flows out of gold.
Platinum is up about 165% this year, while palladium has gained more than 90%.
With investors expecting the Fed to cut rates twice next year, non-yielding assets such as gold are likely to stay supported in a lower-rate environment.
The geopolitical backdrop has also been in focus, with Washington stepping up efforts to effectively “blockade” Venezuelan oil tankers over the next two months, while the United States said on Thursday it had struck Islamic State militants in north-western Nigeria following attacks on Christian communities there.
