Gold, silver, and platinum soared to fresh record highs on Friday, capping a historic year for the sector as speculative momentum, expectations of U.S. rate cuts, and geopolitical tensions converged in thin holiday trading. Spot gold touched $4,530.60 per ounce, silver surged to $75.14, and platinum blasted past $2,400 for the first time.

“Momentum-driven and speculative players have been powering the rally sinceearly 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 records,” said Kelvin Wong, senior market analyst at OANDA. He projected gold could approach $5,000 and silver $90 in the first half of 2026.

A Historic Year for Metals

Gold is on track for its biggest annual gain since 1979, up nearly 72% year-to-date, fueled by Federal Reserve easing, strong central bank buying, and de-dollarization trends. Silver has outpaced even gold, skyrocketing 158% on structural supply deficits, its classification as a U.S. critical mineral, and robust industrial demand—particularly in green technologies.

Platinum and palladium also extended blistering rallies, with platinum up roughly 165% this year and palladium gaining over 90%. Both metals have been lifted by tight supply, automotive sector demand, and investment rotation from gold amid tariff uncertainty and sanctions-related stockpiling.

Macro Drivers: Dovish Fed and Rising Tensions

Markets are currently pricing in two U.S. rate cuts in 2026, supporting non-yielding assets like gold. Geopolitical friction added further fuel, with the U.S. enforcing a “quarantine” of Venezuelan oil and conducting strikes against Islamic State militants in Nigeria.

As liquidity thins into year-end, the metals surge reflects a potent mix of monetary, macroeconomic, and speculative forces—setting the stage for continued volatility and potentially higher peaks in the new year.