New York/London — Precious metals opened 2026 trading on a firm footing, extending the historic rallies that defined 2025, as expectations of U.S. interest rate cuts and persistent global tensions sustained robust investor demand. Spot gold held steady around $4,313 per ounce after touching a session high above $4,402, remaining within sight of its record peak of $4,549.71 set in late December.

The bullish sentiment encompasses the entire complex. Spot silver advanced 0.7% to $71.77/oz, platinum jumped 3.5% to $2,125.80, and palladium gained nearly 2%. These moves follow a spectacular 2025, where gold rose 64%, silver surged over 147%, and platinum gained 127%, driven by a powerful confluence of financial and industrial demand.

The Dual Drivers: Monetary Policy and Safe-Haven Demand

Analysts point to a dual catalyst engine. "We are continuing to see the market talk about cuts in March and maybe another cut later this year... that combination with significant talk about markets potentially being at risk with tariffs and continued U.S. debt are all kind of moving [precious metals] higher," said TD Securities' Bart Melek.

The anticipation of Federal Reserve rate cuts lowers the opportunity cost of holding non-yielding bullion, enhancing its appeal. Concurrently, its status as a traditional safe-haven asset is reinforced by unresolved geopolitical conflicts in Ukraine, Gaza, and unrest in Iran, creating a sustained bid in the market.

Industrial Metals Outperform on Structural Deficits

While gold is buoyed by financial logic, silver and platinum's even stronger gains highlight critical industrial and supply-side dynamics. Silver's designation as a critical U.S. mineral, coupled with supply shortages and low inventories amid strong demand from sectors like solar energy, has fueled its high-stakes race. Platinum faces similar structural tailwinds within its own competitive ecosystem.

Technically, the outlook remains constructive. Analysts note the next key upside objective for gold futures is a close above the record high of $4,584. Despite being on track for weekly losses after a parabolic year-end rally, the fundamental backdrop for precious metals suggests the 2025 strategic pivot into hard assets as a hedge against monetary and geopolitical uncertainty is extending into the new year.