The precious metal market opened 2026 in green when gold and silver prices simultaneously increased sharply, extending the impressive upward momentum of 2025. Geopolitical tensions and expectations of reduced interest rates continue to strengthen safe haven demand.
Spot gold prices rose to 4,390.43 USD/ounce after setting a historic peak of 4,549.71 USD/ounce on December 26. Previously, this precious metal had adjusted to its lowest level in two weeks in the middle of the week.
Gold futures for February in the US also increased by 1% to $4,384.80/ounce.
Mr. Tim Waterer, senior market analyst at KCM Trade, commented: "Precious gems are starting 2026 according to the inertia of 2025 – that is, continuing to rise. The upward momentum is still very clear.
2025 closed with a spectacular increase in gold prices, when the metal increased by 64% - the strongest increase since 1979. The increase was driven by expectations that the US Federal Reserve (Fed) would cut interest rates, geopolitical tensions, central bank buying demand and strong cash flow into gold ETF funds.
Notably, gold has returned to trading at higher prices in India and China this week – for the first time in about two months – as a recent correction stimulated retail demand that was previously restrained by excessively high prices.
The market is currently forecasting that the Fed may reduce interest rates at least twice this year, despite US jobs data not showing clear signs of weakening. In the context of low interest rates, non-profit assets such as gold are often benefiting.
Precious gems are recovering after year-end profit-taking pressure. As technical selling pressure weakens, fundamentals become the main driving force for gold prices to rebound," Mr. Waterer added.
Not only gold, silver prices increased sharply by 3.6% to 73.79 USD/ounce, after setting a record of 83.62 USD/ounce at the beginning of the week. Silver closed 2025 with an increase of 147%, far exceeding gold and recording the strongest year of increase in history.
The increase in silver was driven by the US classifying the metal as a strategic mineral group, along with limited supply and strong industrial-investment demand.
Meanwhile, platinum increased by 2.5% to $2,104.10/ounce, after hitting a historic peak of $2,478.50 earlier this week. This metal has increased by 127% in 2025, the highest increase ever.
Palladium also rose 2.4% to $1,641.92/ounce, closing 2025 with a 76% increase – the strongest in 15 years.
