Gold, silver, and platinum soared to fresh record highs on Friday, driven by speculative momentum, thin year-end liquidity, and mounting expectations of further U.S. interest rate cuts. Rising geopolitical tensions added to the bullish sentiment, propelling all major precious metals to weekly gains.
Spot gold rose 0.6% to $4,504.79 an ounce as of 4:23 a.m. GMT, after hitting an all-time high of $4,530.60 earlier in the session. U.S. gold futures for February delivery climbed 0.7% to $4,535.20. Silver outpaced gold’s rally, jumping 3.6% to $74.56 an ounce after touching a record $75.14.
“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 U.S. rate cuts, a weaker dollar and a flare-up in geopolitical risks combining to push precious metals to fresh record highs,” said Kelvin Wong, senior market analyst at OANDA. “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.”
Gold is on track for its biggest annual gain since 1979, up nearly 72% year-to-date, buoyed by Federal Reserve policy easing, robust central bank demand, rising ETF holdings, and ongoing de-dollarization. Silver has soared 158% this year, supported by structural supply deficits, its designation as a U.S. critical mineral, and strong industrial demand.
With traders pricing in two U.S. rate cuts next year, non-yielding assets like gold are expected to remain well-supported in a low-interest-rate environment.
Geopolitical developments have also contributed to the rally. The U.S. is enforcing a “quarantine” of Venezuelan oil for the next two months and on Thursday launched strikes against Islamic State in northwest Nigeria following attacks on local Christian communities.
Spot platinum surged 7.8% to $2,393.40 an ounce after reaching a record $2,429.98, while palladium climbed 5.2% to $1,771.14, following a three-year high in the previous session. Both metals, widely used in automotive catalytic converters, have benefited from tight supply, tariff uncertainty, and a rotation of investment demand from gold. Platinum is up roughly 165% and palladium more than 90% year-to-date