Gold, silver, platinum hit record highs! Silver tops $75 per ounce for the first time — what’s fueling the rally?
Gold, silver and platinum surged to fresh record highs on Friday, driven by strong speculative momentum, and expectations of further US rate cuts amid rising geopolitical tensions.Silver crossed the $75-per-ounce mark for the first time, as both precious and industrial metals climbed to unprecedented levels amid economic and geopolitical uncertainty, Reuters reported.
Major precious metals headed for weekly gains
Silver peaked at $75.1515 an ounce, with spot silver jumping 3.6% to $74.56 after hitting an all-time high of $75.14. Spot gold rose 0.6% to $4,504.79 an ounce by 0423 GMT, after touching a record high of $4,530.60 earlier in the session. Gold has posted its strongest annual performance since 1979, supported by Federal Reserve policy easing, geopolitical uncertainty, strong central bank buying, rising ETF holdings and continued de-dollarisation. Silver has surged 158% so far this year, far outpacing gold’s nearly 72% gain, helped by structural supply deficits, its designation as a US critical mineral and strong industrial demand.Platinum jumped 7.8% to $2,393.40 an ounce after touching a record $2,429.98 earlier in the day, while palladium climbed 5.2% to $1,771.14, extending gains after hitting a three-year high in the previous session. All major precious metals are headed for weekly gains, Reuters reported.Platinum and palladium, both widely used in automotive catalytic converters, have rallied sharply on tight supply, tariff uncertainty and a rotation of investment demand from gold. Platinum is up about 165% this year, while palladium has gained more than 90% year-to-date.
What’s fueling the rally?
“Momentum-driven and speculative players have been powering the rally in gold and silver since early December, with thin year-end liquidity, expectations of prolonged US rate cuts, a weaker dollar and a flare-up in geopolitical risks combining to push precious metals to fresh record highs,” Kelvin Wong, senior market analyst at OANDA told Reuters.“Looking ahead into the first half of 2026, gold could move towards the $5,000 level, while silver has the potential to reach around $90,” Wong added.With traders pricing in two US rate cuts next year, non-yielding assets such as gold are expected to remain well supported in a lower interest-rate environment. Geopolitical risks have also added to market jitters, with the US focusing on enforcing a “quarantine” of Venezuelan oil over the next two months and carrying out strikes against Islamic State militants in northwest Nigeria following attacks on Christian communities.(Disclaimer: Recommendations and views on the asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
