Precious metals started the New Year strong, with gold recovering from a recent drop and other metals reducing their losses, despite the impressive growth seen in 2025. The surge in gold prices was fueled by anticipations of a Federal Reserve rate reduction, increased geopolitical tensions, and strong demand from central banks. At the same time, silver, platinum, and palladium saw significant annual growth, driven by industrial demand and limitations in supply.

Spot gold rose by 0.8% to $4,346.69 per ounce as of 0019, after reaching a high of $4,549.71 on December 26. It fell to a two-week low on Wednesday. Gold futures in the U.S. for February delivery rose by 0.5%, hitting $4,360.60 per ounce. Bullion experienced a remarkable surge in 2025, concluding the year with annual gains of 64%, marking its most significant increase since 1979. The rally was fueled by interest rate reductions and anticipations of further easing from the U.S. Federal Reserve, geopolitical conflicts, robust demand from central banks, and a rise in investments in exchange-traded funds.

According to the minutes from the U.S. Federal Reserve’s recent two-day meeting in December, the Fed reached a consensus to lower interest rates after a detailed discussion. Investors expect at least two rate reductions from the Federal Reserve before the end of this year. Assets that do not generate income usually do well in situations where interest rates are low. Spot silver rose by 2.1% to $72.75 per ounce, after reaching an all-time high of $83.62 on Monday. Silver wrapped up the year with an impressive rise of 147%, greatly outpacing gold, making it the most successful year ever recorded. The metal has exceeded several important thresholds for the first time, influenced by its designation as a vital U.S. mineral, supply constraints, and reduced inventories amid rising industrial and investment demand.

Spot platinum rose by 0.2% to $2,057.74 per ounce, after reaching an all-time high of $2,478.50 on Monday. It achieved its highest annual increase, climbing by 127%. Palladium saw a 2.4% rise, hitting $1,642.90 per ounce, and finished the last year with an impressive 76% increase, representing its best performance in 15 years. Meanwhile, U.S. President Donald Trump signed a proclamation on Wednesday to delay the rise in tariffs on upholstered furniture, kitchen cabinets, and vanities for another year, as stated by the White House.