Precious metals poised to finish 2025 strong with stellar gains

NEW YORK: Precious metals are set to end the year with stellar gains on Wednesday, as gold posted its biggest annual rise in 46 years, while silver and platinum recorded their highest gains on record.

Spot gold edged 0.3 percent lower to USD4,331.73 per ounce by 10:15 a.m. ET (1515 GMT), after dropping to its lowest level since December 16 earlier in the session. US gold futures for February delivery lost 0.9 percent to USD4,346.40/oz.

Bullion has surged about 65 percent this year, its steepest annual rise since 1979, driven by a cocktail of factors including the Federal Reserve’s rate cuts, geopolitical flashpoints, robust central bank buying, and ETF inflows.

Non-yielding gold thrives in a low-interest-rate environment, and is considered a safe store of value.

Prices have slipped from their recent peaks as traders booked profits after CME raised margins again on precious metal futures.

“The short-term is very choppy and there is some profit-taking but we think the prices will continue to push higher into 2026,” said Marex analyst Edward Meir.

“For gold, there is a chance we could see USD5,000/oz sometime next year and for silver, we can maybe get to USD100/oz.”

Silver has gained more than 151 percent year-to-date, its strongest year ever and far outpacing gold. Supply shortages, low inventories, rising industrial and investor appetite, and its recent designation as a critical mineral in the United States have fueled the rise.

Silver lost 4.8 percent to USD72.83/oz, after hitting a record high of USD83.62 on Monday. Spot platinum fell 6.1 percent to USD2,064.21/oz after rising to a lifetime high of USD2,478.50 on Monday. It is up more than 127 percent in 2025, also its strongest annual performance on record.

Palladium inched up 0.1 percent to USD1,612.25/oz, but was up more than 78 percent for the year, its best performance in 15 years.

“PGMs will probably also move up with gold and silver. They tend to move with industrial metals and the auto sector, so they usually lag, but eventually catch up as funds shift between markets,” Meir said.

Market participants are pricing in two rate cuts in 2026, a scenario that could keep the wind at gold’s back.