Gold prices steadied midweek, rounding off a year of exceptional gains that placed the precious metal on course for its strongest annual performance in nearly half a century, while silver and other metals pulled back after sharp rallies.
Gold closes historic year near record levels
Spot gold traded largely flat at around $4,345 per ounce in early Asian hours, having recently touched a fresh all-time high. US gold futures edged lower as some investors adjusted positions ahead of year-end, but prices remained near record territory.
Over the course of 2025, gold has risen by roughly two-thirds, marking its biggest annual increase since the late 1970s. Analysts attribute the surge to a combination of easing US monetary policy, expectations of further interest rate cuts, persistent geopolitical uncertainty, strong central bank demand, and increased inflows into gold-backed exchange-traded funds.
Silver posts record annual surge despite sharp pullback
Silver prices fell sharply as traders locked in profits following a historic rally. Spot silver slipped to just over $73 per ounce after earlier hitting an all-time high above $83.
Despite the recent decline, silver has delivered its strongest yearly performance on record, gaining more than 150% in 2025. Market participants point to tight supply conditions, low inventories, rising industrial usage, and renewed investor interest—bolstered by its classification as a critical mineral in the United States—as key drivers behind the metal’s exceptional rise.
Platinum and palladium retreat after strong gains
Platinum also retreated from record highs, falling to around $2,065 per ounce after peaking earlier in the week. Even with the pullback, platinum remains up more than 120% for the year, its best annual showing to date.
Palladium followed a similar path, sliding to below $1,500 per ounce. The metal is still set to end the year with gains of about 65%, marking its strongest annual performance in more than a decade.
Technical factors and dollar strength weigh on metals
Analysts said the recent declines across precious metals were driven largely by technical adjustments rather than a shift in fundamentals. Thin trading during the holiday period amplified market moves, while higher margin requirements on metals futures added pressure to prices.
A firmer US dollar also weighed on dollar-denominated metals, making them more expensive for buyers using other currencies. Meanwhile, minutes from the US Federal Reserve’s latest policy meeting suggested policymakers remain cautious on the pace of future rate cuts, although markets continue to expect further easing next year. Lower interest rates typically support non-yielding assets such as gold.
Outlook remains supportive for gold prices
Looking ahead, some market watchers believe the forces that propelled gold higher in 2025 could remain in place into next year. Continued central bank buying, geopolitical risks, and expectations of looser monetary policy have led some analysts to project that gold could test the $5,000 level by early 2026 if current trends persist.
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