Gold hits a record high as silver tops $75 an ounce, and platinum approached a record on geopolitical tensions, speculation on future U.S. interest rate cuts and thin liquidity around the Christmas holidays.
President Donald Trump said Thursday that the U.S. has launched multiple strikes against the Islamic State group in Nigeria, saying in a Truth Social post saying that the group has been targeting Christians. Gold is a traditional hedge against geopolitical and economic uncertainty.
Speculators are also betting on what’s known as the Santa Claus Rally to support a new rally in equities and the broader market in the coming days. Also supporting precious metals are bets that the Federal Reserve will cut interest rates multiple times in 2026. Lower interest rates are typically bullish for precious metals, making them a more attractive alternate investment.
February gold futures slipped $2.90 Wednesday to settle at $4,502.80 an ounce on Comex, after the most-active contract advanced 2.6% so far this week. Bullion is up 5.8% in December after gaining 6.5% in November and increasing 3.2% in October. It’s up 71% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $55.20 (+1.23%) an ounce to $4558.00 and the DG spot price is $4516.70.
March silver futures rose 0.8% Wednesday to settle at $71.69 an ounce on Comex, and the most-active contract rallied 6.2% so far this week. The white metal hit a series of record highs this month on a historic squeeze in the London market. Silver is up 25% this month after increasing 19% in November and rising 3.3% in October. It’s up 145% this year after rising 21% in 2024. Currently, the March contract is up $3.315 (+4.62%) an ounce to $75.00 and the DG spot price is $74.56.
Both gold and silver are heading for their best annual performances since 1979.
Most global financial markets were closed Thursday for the Christmas Day holiday. Many European and Asian markets are also closed Friday for Boxing Day.
About 82% 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 17% expect another 25 basis point cut.
The Fed cut interest rates for a third consecutive time earlier this month to 3.50% to 3.75% and maintained its 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.
The minutes of this month’s Fed policy meeting are scheduled for release on Tuesday and may shed more light on policymakers’ thinking about future rate cuts.
Spot palladium lost 7.5% Wednesday to $1,740.00 an ounce and is up 1% so far this week. Palladium is up 20% this month after adding 0.5% in November and rising 14% in October. Palladium is up 87% this year after dropping 17% in 2024. Currently, the DG spot price is up $133.60 an ounce to $1860.50.
Spot platinum decreased 0.6% Wednesday to $2,251.50 an ounce, though it rallied 13% so far this week. It’s up 36% in December after climbing 4.7% in November and rising 1% in October. Platinum is up 147% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $172.30 an ounce to $2385.10.
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