Gold and silver rose early Wednesday, with silver hitting a record above $65 an ounce, driven by softer than expected U.S. jobs data for last month and haven demand from geopolitical uncertainty related to Venezuela.
President Donald Trump said Tuesday that the U.S. would blockade “all sanctioned tankers” on oil tankers in and out of Venezuela, ramping up pressure on the South American country.
Separately, the U.S. unemployment rate unexpectedly climbed to 4.6% in November, the highest level since September 2021, in data released Tuesday.
February gold futures fell $2.90 Tuesday to settle at $4,332.30 an ounce on Comex, though the most-active contract is up $3.90 so far this week. Bullion gained 6.5% last month after increasing 3.2% in October and surging 10% in September, the most in six months. It’s up 64% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $24.80 (+0.57%) an ounce to $4357.10 and the DG spot price is $4331.60.
The latest jobs numbers showed that U.S. nonfarm payrolls rose by 64,000 in November, above analyst expectations, but the results were considered mixed because of a large decline in October data which reflected cuts to the federal workforce.
The Federal Reserve closely watches both labor market and inflation data when setting monetary policy.
The Fed cut interest rates for a third consecutive time last week to 3.50% to 3.75% and maintained their outlook for just one interest rate cut in 2026. 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.
About 75% 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 24% expect another 25 basis point cut.
Lower interest rates are typically considered bullish for precious metals, making them a more attractive alternate investment.
The next key bit of economic data will be a key inflation report, the consumer price index, on Thursday.
March silver futures dropped 0.4% Tuesday to settle at $63.32 an ounce on Comex, though the most-active contract rallied 2.1% in the first two days of the week. The white metal hit a series of record highs last week on a historic squeeze in the London market. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s up 117% this year after rising 21% in 2024. The March contract is currently up $2.032 (+3.21%) an ounce to $65.355 and the DG spot price is $65.34.
Both gold and silver are heading for their best annual performances since 1979.
Spot palladium gained 1.7% Tuesday to $1,606.50 an ounce after advancing 5.8% so far this week. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 73% this year after dropping 17% in 2024. Currently, the DG spot price is up $31.60 an ounce to $1613.00.
Spot platinum increased 3.4% Tuesday to $1,853.90 an ounce and rallied 5.6% in the first two days of the week. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 103% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $46.10 an ounce to $1901.60.
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