Precious metals continued their explosive year-end rally, with silver crossing the $75 per ounce threshold for the first time in history, gold touching
a fresh all-time high of $4,530.60, and platinum reaching a record $2,429.98 before settling slightly lower, said a TOI report. Spot silver jumped as much as 3.6% to $74.56 after peaking at $75.14, while gold rose 0.6% to $4,504.79 following its intraday record. Platinum surged 7.8% to $2,393.40, and palladium climbed 5.2% to $1,771.14, extending recent three-year highs. All major precious metals are on track for strong weekly gains, capping off an extraordinary 2025 where gold delivered its best annual performance since 1979.The rally has been fueled by a powerful mix of factors. Expectations of prolonged US Federal Reserve rate cuts — with markets pricing in at least two reductions in 2026 — have boosted non-yielding assets like gold and silver, as lower interest rates reduce the opportunity cost of holding them. A weaker US dollar has made these dollar-denominated metals more attractive to international buyers. Adding to the momentum are persistent geopolitical tensions, including US enforcement of a "quarantine" on Venezuelan oil tankers and strikes against Islamic State militants in Nigeria, which have heightened safe-haven demand. Thin year-end liquidity has amplified speculative trading, with momentum-driven players pushing prices higher since early December.Silver has particularly outperformed, surging 158% year-to-date — far ahead of gold's nearly 72% gain — thanks to structural supply deficits, its status as a US critical mineral, and robust industrial demand from sectors like electronics and solar energy. Platinum and palladium, key components in automotive catalytic converters, have rallied sharply (platinum up 165%, palladium over 90%) on tight supply, tariff uncertainties, and a shift in investment flows from gold. Analysts like Kelvin Wong from OANDA suggest gold could target $5,000 and silver $90 in the first half of 2026, underscoring how 2025's combination of monetary easing, currency weakness, and global risks has transformed precious metals into one of the year's standout asset classes. Investors should note that such rapid gains carry volatility, and these views reflect expert opinions rather than guaranteed outcomes.
