Gold and silver poised for best year in decades despite slipping early Wednesday as silver tumbled from near-record highs on profit taking and a stronger dollar. Platinum is also set for its biggest annual gain on record.
Precious metals have gotten a boost this year on geopolitical and economic risk as well as anticipation of future interest rate cuts.
February gold futures rose 1% Tuesday to settle at $4,386.30 an ounce on Comex, though the most-active contract retreated 3.7% in the first two days of the week. Bullion is up 3.1% in December after gaining 6.5% in November and increasing 3.2% in October. It’s up 66% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently down $25.10 (-0.57%) an ounce to $4361.20 and the DG spot price is $4343.00.
March silver futures rallied 11% Tuesday to settle at $77.92 an ounce on Comex, and the most-active contract gained 0.9% so far this week. The white metal hit a series of record highs this month. Silver is up 36% this month after increasing 19% in November and rising 3.3% in October. It’s up 166% this year after rising 21% in 2024. The March contract is currently down $5.119 (-6.57%) an ounce to $72.800 and the DG spot price is $73.41.
Most global financial markets will be closed Thursday for New Year’s Day.
Gold in particular has been sensitive to speculation about multiple U.S. interest rate cuts in 2026. Lower interest rates are typically bullish for precious metals, making them a more attractive alternate investment.
The minutes of this month’s Federal Reserve policy meeting, which came out Tuesday, showed that policymakers were tightly split over whether to cut rates this month. The Fed ended up reducing interest rates for a third consecutive time to 3.50% to 3.75%. The minutes indicated that this divide is likely to persist, however.
“With respect to the extent and timing of additional adjustments to the target range for the federal funds rate, some participants suggested that, under their economic outlooks, it would be appropriate to keep the target range unchanged for some time after a lowering of the range at this meeting,” the minutes stated.
About 85% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 16% expect another 25 basis point cut. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
Precious metals have also soared in recent weeks on geopolitical tensions, including between the U.S. and Venezuela and the ongoing conflicts in Ukraine and Gaza. Precious metals are a traditional hedge against geopolitical and economic uncertainty.
Silver, meanwhile, has been rallying on industrial demand and tight supply as it’s increasingly considered a critical metal for electronics and other goods. The same is true for platinum and palladium, which also had a strong year.
Spot palladium advanced 1.5% Tuesday to $1,651.50 an ounce but has plunged 15% so far this week. Palladium is up 14% this month after adding 0.5% in November and rising 14% in October. Palladium is up 78% this year after dropping 17% in 2024. Currently, the DG spot price is down $54.10 an ounce to $1643.00.
Spot platinum rose 7% Tuesday to $2,235.00 an ounce but is down 7.9% so far this week. It’s up 35% in December after climbing 4.7% in November and rising 1% in October. Still, platinum is up 145% in 2025 after losing 8.4% in 2024. The DG spot price is currently down $169.70 an ounce to $2085.40.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.