Precious metals kick off the New Year higher after a record-breaking 2025
Investors currently expect at least two rate cuts by the Fed this year
[BENGALURU] Precious metals started the New Year higher on Friday (Jan 2), as gold climbed a little from a two-week low hit in the previous session, while the others also pared some losses accumulated in the past week, even as the metals notched unprecedented gains in 2025.
Spot gold rose 0.8 per cent to US$4,346.69 per ounce (oz) as at 8.19 am, after hitting a record high of US$4,549.71 on Dec 26. It fell to a two-week low on Wednesday.
US gold futures for February delivery gained 0.5 per cent to US$4,360.60/oz.
Bullion staged a stellar rally in 2025, ending the year with annual gains of 64 per cent, its largest since 1979.
Interest rate cuts and bets of further easing by the US Federal Reserve, geopolitical conflicts, robust demand from central banks and rising holdings in exchange-traded funds had fuelled gold’s rally last year.
As per the minutes of the US Federal Reserve’s last two-day session in December, the Fed agreed to cut interest rates only after a deeply nuanced debate.
Investors currently expect at least two rate cuts by the Fed this year.
Non-yielding assets tend to do well in low-interest-rate environments.
Spot silver added 2.1 per cent to US$72.75 per ounce, after hitting an all-time high of US$83.62 on Monday. Silver ended the year surging 147 per cent, far outpacing gold, in what was its best year ever on-record.
The metal broke through multiple important milestones for the first time, propelled by its designation as a critical US mineral, supply constraints and low inventories amid rising industrial and investment demand.
Spot platinum was up 0.2 per cent at US$2,057.74 per ounce, after rising to an all-time high of US$2,478.50 on Monday, and it too staged its largest gain in a year ever, having climbed 127 per cent.
Palladium rose 2.4 per cent to US$1,642.90 per ounce, closing the previous year up 76 per cent, its best in 15 years.
Meanwhile, US President Donald Trump signed a proclamation on Wednesday to delay increases in tariffs for upholstered furniture, kitchen cabinets and vanities for another year, the White House said. REUTERS
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