Precious metals rise early in 2026 on rate cut bets, safe haven demand

NEW YORK: Precious metals began the first trading session of the New Year by building on the major gains of 2025 as geopolitical tension and expectations of US rate cuts keep demand for gold high.

Spot gold was up 0.5 percent to USD4,335.50 per ounce, as of 10:25 a.m. ET (15:25 GMT), after rising as high as USD4,402.06 earlier in the session. Bullion hit a record high of USD4,549.71/oz on December 26, and logged a 64percent rise in 2025.

US gold futures for February delivery added 0.1percent to USD4,346.20/oz. “We are continuing to see the market talk about cuts in March and maybe another cut later this year… that combination with significant talk about markets potentially being at risk with tariffs and continued US debt are all kind of moving gold, silver, platinum, and palladium higher,” said Bart Melek, global head of commodity strategy at TD Securities.

Markets anticipate at least two quarter-point Fed rate cuts, making non-yielding gold more attractive to investors. Gold, a traditional safe-haven asset, was also supported by news of unrest in Iran and the absence so far of a Russia-Ukraine peace deal, as well as issues surrounding Gaza.

“Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of USD4,584,” Jim Wyckoff, senior analyst at Kitco Metals said in a note. Elsewhere, physical gold traded at a premium in India and China for the first time in about two months. Spot silver advanced 2.3percent to USD72.9/oz, after hitting an all-time-high of USD83.62 on Monday.

Platinum jumped 3.7 percent to USD2,130.55/oz, after rising to an all-time-high of USD2,478.50, also on Monday. Both metals outperformed gold in 2025, with silver rising over 147 percent, driven by its designation as a critical US mineral, supply shortages, and low inventories when industrial and investment demand was strong. Platinum rose 127percent last year.

Palladium gained 1percent to USD1,621.75 per ounce, after closing the previous year up 76 percent, its biggest gain in 15 years. Following the end-of-year rally, all precious metals are set to post weekly losses.