Gold softens as silver slips early Monday after breaching $80 an ounce on Sunday amid a broader-market, year-end rally that also sent equities climbing. The yellow metal gave up ground on profit-taking.
Silver has been rallying on industrial demand for solar panels, electric vehicles, AI data centers and electronics as inventories are becoming depleted, according to a note Sunday from Tony Sycamore, market analyst at IG Australia, quoted by Bloomberg.
Precious metals have also rocketed higher in recent weeks amid geopolitical tensions, including the latest U.S. strikes on Venezuela and Nigeria and the ongoing conflicts in Ukraine and Gaza. Precious metals are a traditional hedge against geopolitical and economic uncertainty.
Speculation of multiple U.S. interest rate cuts in 2026 and thin liquidity around the year-end holidays has added to the rally. The minutes of this month’s Federal Reserve policy meeting are scheduled for release on Tuesday and may shed more light on policymakers’ thinking about future rate cuts. Lower interest rates are typically bullish for precious metals, making them a more attractive alternate investment.
February gold futures rose 3.8% last week to settle at $4,552.70 an ounce on Comex, after the most-active contract advanced 1.1% Friday. Bullion is up 7% in December after gaining 6.5% in November and increasing 3.2% in October. It’s up 72% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently down $192.70 (-4.23%) an ounce to $4360.00 and the DG spot price is $4325.60.
March silver futures rallied 14% last week to settle at $77.20 an ounce on Comex after the most-active contract gained 7.7% Friday. The white metal hit a series of record highs this month on a historic squeeze in the London market. Silver is up 35% this month after increasing 19% in November and rising 3.3% in October. It’s up 164% this year after rising 21% in 2024. The March contract is currently down $5.286 (-6.85%) an ounce to $71.910 and the DG spot price is $72.03.
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 were also closed Friday for Boxing Day. This week, global markets will close Thursday for New Year’s Day.
About 80% 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 19% 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.
Spot palladium advanced 13% last week to $1,939.00 an ounce after increasing 11% Friday. Palladium is up 34% this month after adding 0.5% in November and rising 14% in October. Palladium is up 109% this year after dropping 17% in 2024. The current DG spot price is down $316.80 an ounce to $1636.50.
Spot platinum rose 22% last week to $2,427.50 an ounce after rallying 7.8% Friday. It’s up 47% in December after climbing 4.7% in November and rising 1% in October. Platinum is up 166% in 2025 after losing 8.4% in 2024. The DG Spot price is currently down $339.60 an ounce to $2133.50.
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