Quick overview

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The bullion asset saw little change after a three-day surge that raised the price of the precious metal to an all-time high above $4,500 an ounce. Platinum also retreated from an all-time high reached overnight, falling more than 6%.

Some traders are beginning to take profits following a fierce run in the precious metal market as the year comes to an end, with gold up nearly 70% in 2025.

The price of platinum has more than doubled. The selling pressure was supported by the 14-day relative strength index for gold, which was in overbought territory, indicating that a pause or decline in price may be imminent.

The appeal of gold as a haven amid growing tensions in Venezuela, where the US has blockaded oil tankers, has fueled the metal’s recent surge.

Additionally, traders are speculating that the Federal Reserve will further reduce borrowing costs in the upcoming year, which would benefit non-yielding precious metals. Both gold and silver are expected to have their best yearly results since 1979.

Elevated central bank purchases and inflows into exchange-traded funds have supported the precious metals rally. World Gold Council data shows that total holdings in gold-backed ETFs have increased each month this year, except May.

Goldman Sachs has predicted that prices will continue to rise in 2026. The base-case scenario is $4,900, with upside risks. While fiscal drift attracted retail buyers and dollar diversification kept central banks in a strong position, easier global monetary policy has helped precious metals. More generally, a banner year in metals was made possible by a combination of tight supply, tariffs, and geopolitical tensions. This week, silver saw its first price above $70 per ounce.

Speculative inflows and persistent supply disruptions across major trading hubs have driven the metal’s most recent surge, following a historic short squeeze in October, which has been even more pronounced than gold’s. Since then, London’s vaults have seen substantial inflows, but a large portion of the world’s silver supply remains in New York, as traders await the conclusion of a US Commerce Department investigation into whether imports of vital minerals pose a threat to national security.