After an unprecedented year for precious metals, Gold and Silver have started the new year on a positive trajectory. Investors reflected on record-breaking gains in 2025, and prices for both metals increased on Friday, partially offsetting the losses seen in the final days of last year.
Spot gold, which had hit a two-week low in the previous session, rose 1.5% to $4,368.25 per ounce by around 9 a.m. U.S. gold futures for February delivery also increased 0.5% to $4,360.60 per ounce. The metal had reached a record high of $4,549.71 on December 26 before experiencing a short-term decline earlier this week.
The early gains indicate that investors remain willing to buy gold on dips. Demand continues to be supported by interest rate expectations and the enduring appeal of gold as a safe-haven asset, despite some profit-booking at the end of December.
2025: A Historic Year for Gold
Gold recorded its largest annual gain since 1979, finishing 2025 up an astonishing 64%. Multiple factors contributed to this surge, including:
- The U.S. Federal Reserve’s interest rate cuts and anticipated future easing
- Persistent geopolitical tensions
- Strong central bank purchases of gold
- Rising holdings in gold-backed exchange-traded funds (ETFs), reflecting growing investor interest
Gold benefits from low interest rates as it does not yield returns. Many investors continued to view gold as a hedge, particularly with expectations of declining borrowing costs in the near term.
Silver Surges Alongside Gold
Silver also began 2026 strongly. By 9 a.m., spot silver had risen 2.6% to $73 per ounce. Earlier in the week, it reached an all-time high of $83.62. Silver ended 2025 with a record annual gain of 147%, outpacing gold and marking its best year ever.
Several factors fueled the silver rally:
- Designation as a critical mineral in the U.S., highlighting its role in renewable energy and technology
- Supply constraints and low inventory levels
- High industrial and investor demand
- Breaking several significant price levels, attracting increased market attention
Rate Expectations and Federal Reserve Insights
Minutes from the U.S. Federal Reserve’s two-day meeting in December revealed that officials debated carefully before deciding to lower interest rates. Concerns over inflation and the need to stimulate growth were central to the discussion.
Market expectations now price in at least two rate cuts in 2026. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, supporting its prices even amid short-term fluctuations.
Other Precious Metals Follow Suit
At the start of 2026, other precious metals also showed gains:
| Metal | Spot Price (Jan 2, 2026) | Record High 2025 | 2025 Annual Gain |
|---|---|---|---|
| Gold | $4,368.25/oz | $4,549.71/oz | 64% |
| Silver | $73/oz | $83.62/oz | 147% |
| Platinum | $2,057.74/oz | $2,478.50/oz | 127% |
| Palladium | $1,642.90/oz | N/A | 76% |
Platinum gained 0.2% to $2,057.74 per ounce after hitting a record high of $2,478.50 in 2025, marking its best annual performance ever with a 127% increase. Palladium increased by 2.4% to $1,642.90 per ounce, following a 76% rise last year, its strongest 15-year performance. Supply constraints and consistent industrial demand, particularly from the auto sector, supported stability in both metals despite occasional volatility.
Overall, the start of 2026 has shown optimism for precious metals, reflecting a combination of investor interest, geopolitical considerations, and monetary policy expectations. With interest rate forecasts and ongoing industrial demand, gold, silver, and other key metals appear well-positioned to maintain momentum in the new year.
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