Precious Metals Hold Firm in 2026 Opener Following Record-Breaking Year

 

 

Gold futures dip slightly in New Year trading, but geopolitical tensions and anticipated US interest rate cuts continue to bolster investor appetite.

 

The global precious metals market remained broadly stable during the first trading session of 2026, as investors weighed the prospect of US interest rate cuts against a backdrop of persistent geopolitical instability.

 

Gold, which recently capped its strongest annual performance in 46 years, saw a minor pull-back.

 

Gold futures on the COMEX market for February delivery closed down approximately 0.3% at $4,329.60 per ounce.

 

Spot gold followed suit, holding steady at $4,313.29 after hitting an intra-day peak of $4,402.06.

 

Market sentiment remains buoyed by expectations that the US Federal Reserve will initiate a series of interest rate reductions.

 

Traders are currently pricing in at least two 0.25% cuts this year, with the first potentially arriving as early as March.

 

Because gold does not yield interest, it typically becomes more attractive to investors when rates fall.

 

Bart Melek, Global Head of Commodity Strategy at TD Securities, noted that broader economic anxieties are also at play.

 

"Concerns regarding trade tariffs and the rising level of US public debt are fundamental drivers pushing gold, silver, and platinum higher," Melek said.

 

Furthermore, the "safe-haven" appeal of bullion has been reinforced by ongoing unrest in Iran, the lack of a peace settlement between Russia and Ukraine, and the continuing conflict in Gaza.

 

Despite gold's record-breaking run—surging 64% throughout 2025—it was outperformed by its sister metals.

 

Silver: Spot silver rose 0.7% to $71.77 per ounce. In 2025, silver prices skyrocketed by over 147%, driven by its status as a "critical mineral" for the green energy transition and chronic supply shortages.

 

Platinum: Prices jumped 3.5% to $2,125.80 per ounce. Platinum saw a 127% increase last year, supported by robust industrial demand.

 

 

Technical analysts, including Jim Wyckoff of Kitco Metals, suggest that the next major milestone for gold is a close above the psychological resistance level of $4,584.

 

In the physical market, demand in China and India remains high, with bars and jewellery trading at a premium for the first time in two months.

 

However, experts warn of a short-term correction; after the aggressive rally that closed out 2025, many analysts expect the sector to end this first week of the new year slightly in the red as traders lock in profits.