Quick overview

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Silver crossed the $77 threshold for the first time, and gold and platinum reached all-time highs thanks to anticipated rate cuts by the Federal Reserve and geopolitical unrest that increased demand for safe havens.

After reaching an all-time high of $77.4, spot silver jumped 7.5 percent to $77.3 per ounce, marking a 167 percent year-to-date surge fueled by supply shortages, its classification as a US critical mineral, and robust investment inflows. After reaching a record $4,549.71 earlier, spot gold was up 1.2 percent at $4,531.41 per ounce.

A weak dollar, heightened geopolitical tensions, and expectations of additional Fed easing in 2026 are causing volatility in thin markets. Gold futures for February delivery settled 1.1 percent higher at $4,553.

The trend remains strong, even though some profits may be taken before the year is out. In 2026, markets expect two rate cuts.

The first is expected in the middle of the year, amid rumors that US President Donald Trump may appoint a dovish Fed chair, raising hopes for a more accommodative monetary policy.

The US dollar index is expected to drop weekly, making dollar-priced gold more appealing to foreign buyers. In terms of geopolitics, Trump stated on Thursday that the US had conducted airstrikes against Islamic State militants in northwest Nigeria.

By year’s end, $80 in silver is within reach. The next target for gold is $4,686.61, with $5,000 likely in the first half of the following year. Supported by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends, gold remains on track for its biggest yearly gain since 1979. On the physical demand front, gold discounts in China shrank significantly from last week’s five-year highs, while in India they widened to their highest level in over six months this week as a relentless price rally restrained retail purchases.