Precious metals started the new year on a strong note on Friday, resuming their rally after an unprecedented surge in 2025, as geopolitical tensions and hopes for interest rate cuts this year supported demand for safe-haven assets, UNN reports with reference to Reuters.
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Spot gold rose 1.4% to $4372.35 per ounce at 07:24 GMT (09:24 Kyiv time), after reaching a record high of $4549.71 on December 26. On Wednesday, it fell to a two-week low. U.S. gold futures for February delivery rose 1% to $4384.80 per ounce.
"Precious metals are starting 2026 much the same way they did in 2025, which is with upward momentum," said Tim Waterer, chief market analyst at KCM Trade.
In 2025, gold showed impressive growth, ending the year with an annual gain of 64%, the largest since 1979.
Interest rate cuts, expectations of further monetary policy easing by the U.S. Federal Reserve, geopolitical conflicts, high demand from central banks, and rising assets in exchange-traded funds fueled the rise in gold prices last year.
This week, gold traded at a premium in the largest centers - India and China - for the first time in two months, as a correction from historical highs contributed to an increase in retail demand, which had suffered from unprecedented price increases.
Investors are currently expecting at least two Fed rate cuts this year, despite weak U.S. jobless claims data.
Non-yielding assets generally perform well in a low interest rate environment.
"(Precious metals) appear to be making up for losses incurred at the end of the year earlier in the week. End-of-year position closing pressure has eased, and gold is starting 2026 with gains as fundamentals are back in focus," Waterer said.
Spot silver rose 3.6% to $73.79 per ounce after reaching an all-time high of $83.62 on Monday. Silver ended the year up 147%, significantly outperforming gold, making it its best year on record.
The metal broke several important milestones for the first time, thanks to its designation as a critical mineral in the U.S., supply constraints, and low inventories amid rising industrial and investment demand.
Spot platinum rose 2.5% to $2104.10 per ounce after reaching an all-time high of $2478.50 on Monday. It also showed the largest annual gain in 2025, rising 127%.
Palladium prices rose 2.4% to $1641.92 per ounce after rising 76% last year, its best performance in 15 years.
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