Precious metals kick off the New Year higher after a robust 2025 rally

Precious metals kick-started the New Year on a strong note on Friday, resuming their rally after unprecedented gains in 2025, as geopolitical tensions and hopes of lower interest rates this year kept safe-haven demand intact.

Spot gold climbed 1.3% to $4,372.02 per ounce as of 0357 GMT, after hitting a record high of $4,549.71 on December 26.

It fell to a two-week low on Wednesday. US gold futures for February delivery gained 1% to $4,386.40/oz. “(Precious metals) seem to be making amends for the year-end selling which afflicted them earlier in the week.

Year-end position-squaring pressures have eased and gold is kicking off 2026 with gains, now that fundamentals are again in focus,“ said Tim Waterer, chief market analyst at KCM Trade. Bullion staged a stellar rally in 2025, ending the year with annual gains of 64%, its largest since 1979.

Interest rate cuts, bets of further easing by the US Federal Reserve, geopolitical conflicts, robust demand from central banks and rising holdings in exchange-traded funds had fueled gold’s rally last year.

Americans filed the fewest new jobless claims in a month last week, and while the numbers have eased from recent highs, a weak labour market seems to be persisting under US President Donald Trump’s second term in office.

Gold, silver continue downward trend

Waterer added that jobless claims had little effect on expectations of multiple rate cuts this year.

“Precious metals are commencing 2026 in much the same fashion as they performed in 2025 - which is to say with forward momentum.”

Investors currently expect at least two rate cuts by the Fed this year.

Non-yielding assets tend to do well in low-interest-rate environments.

Spot silver added 2.8% to $73.30 per ounce, after hitting an all-time high of $83.62 on Monday.

Silver ended the year surging 147%, far outpacing gold, in what was its best year ever on record.

The metal broke through multiple important milestones for the first time, propelled by its designation as a critical US mineral, supply constraints and low inventories amid rising industrial and investment demand.

Spot platinum was up 3.1% at $2,116.40 per ounce, after rising to an all-time high of $2,478.50 on Monday, and it too staged its largest gain in a year ever, having climbed 127%.

Palladium rose 2.2% to $1,641.03 per ounce, closing the previous year up 76%, its best in 15 years.