Gold, silver and platinum surged to record levels on Friday, lifted by strong speculative activity, thin year-end trading conditions, expectations of further U.S. interest rate cuts and escalating geopolitical tensions.
Spot gold climbed 0.6% to $4,504.79 an ounce by 0423 GMT, after earlier hitting a record high of $4,530.60. U.S. gold futures for February delivery rose 0.7% to $4,535.20.
Silver outperformed, jumping 3.6% to $74.56 an ounce after touching an all-time peak of $75.14.
According to Kelvin Wong, senior market analyst at OANDA, momentum-driven and speculative buying has fuelled rallies in gold and silver since early December. He said low year-end liquidity, expectations of sustained U.S. rate cuts, a weaker dollar and renewed geopolitical risks have combined to push precious metals to fresh highs.
Looking ahead to the first half of 2026, Wong said gold could approach the $5,000 level, while silver may rise towards $90.
Gold has posted a powerful rally this year, marking its strongest annual performance since 1979. Gains have been driven by Federal Reserve easing, geopolitical uncertainty, heavy central bank buying, rising ETF inflows and ongoing de-dollarisation. Silver has surged 158% so far this year, far outpacing gold’s near-72% rise, supported by supply deficits, its designation as a U.S. critical mineral and solid industrial demand.
With markets pricing in two U.S. rate cuts next year, non-yielding assets such as gold are expected to remain well supported in a low-rate environment.
Geopolitical concerns have also intensified, with the U.S. moving to enforce a temporary “quarantine” on Venezuelan oil and launching strikes against Islamic State militants in northwest Nigeria following attacks on Christian communities.
Platinum jumped 7.8% to $2,393.40 an ounce after earlier reaching a record $2,429.98, while palladium rose 5.2% to $1,771.14, extending gains after hitting a three-year high in the previous session. All major precious metals are on track for weekly gains.
Platinum and palladium, both key components in automotive catalytic converters, have rallied sharply amid tight supply, tariff uncertainty and a rotation of investment demand away from gold. Platinum is up about 165% year-to-date, while palladium has gained more than 90%.
“Platinum prices are being underpinned by strong industrial demand, with U.S. stockists covering positions due to sanctions-related concerns, which is keeping prices elevated,” said Jigar Trivedi, senior research analyst at Reliance Securities in Mumbai.
Click here for more on Finance and Investing
