Precious metals have started the new year with a positive upward momentum in Friday's trading session. Geopolitical tensions and expectations that interest rates will fall this year continue to strengthen demand for safe-haven assets.
Spot gold prices rose 1.4%, to 4,372.35 USD/ounce at 7:24 GMT, after setting a record of 4,549.71 USD/ounce on December 26. Previously, gold prices fell to their lowest level in two weeks on Wednesday.
US gold futures for February delivery rose 1%, reaching $4,384.80/ounce.
Precious gems are entering 2026 in a very similar way to 2025 – which is to maintain the upward momentum," said Tim Waterer, senior market analyst at KCM Trade.
In 2025, gold had a booming price increase, closing the year with an increase of 64% - the strongest increase since 1979.
The upward momentum of gold in the past year was driven by interest rate cuts, expectations that the US Federal Reserve (Fed) would continue to ease monetary policy, geopolitical conflicts, strong buying demand from central banks as well as increased gold holdings in exchange-rate funds (ETFs).
This week, gold was traded for the first time in about two months at a higher price in major centers such as India and China, when the adjustment from the historical peak helped retail demand recover, after being affected by too strong price increases.
Currently, investors expect the Fed to cut interest rates at least twice this year, despite data on US unemployment benefits showing weak signals.
Non-profitable assets, such as gold, often benefit in a low-interest environment.
Precious gems seem to be recovering after year-end profit-taking selling pressure, which had negatively impacted the first sessions of the week. As year-end position balancing pressure diminishes, gold is starting 2026 with green as fundamentals return to the center of attention" - Mr. Waterer said.
Spot silver prices rose 3.6% to 73.79 USD/ounce, after reaching a record high of 83.62 USD/ounce on Monday. Silver closed 2025 with an increase of 147%, far exceeding gold and recording the strongest year of increase in history.
This metal has for the first time crossed many important thresholds, thanks to being listed as a strategic mineral by the US, amid tight supply and low inventories, while industrial and investment demand is increasing sharply.
Spot platinum prices rose 2.5%, to $2,104.10/ounce, after hitting a record high of $2,478.50/ounce on Monday. Platinum also recorded the largest annual increase ever in 2025, with an increase of 127%.
Palladium rose 2.4% to $1,641.92/ounce, after closing last year with an increase of 76% – the strongest increase in 15 years.
The world gold and silver market operates through two main valuation mechanisms. The first is the spot market, where prices are quoted for transactions and immediate delivery.
Second is the futures contract market, where prices are set for futures delivery. Due to year-end book closing activities, December gold contracts are currently the most actively traded on CME.
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