NEW YORK, December 29, 2025, 07:28 ET
- Spot silver fell more than 5% after touching a record $83.62 an ounce
- Gold, platinum and palladium also pulled back as year-end profit-taking set in
- Investors are watching U.S. Federal Reserve minutes due Tuesday for clues on 2026 rate cuts
Silver slid on Monday after briefly topping $80 an ounce for the first time, as investors took profits late in the year and bets on easing geopolitical risks reduced demand for “safe-haven” assets such as precious metals. [1]
The retreat matters because the rally has been one of the sharpest across major commodities in 2025, pulling in both speculative money and longer-term investors looking for inflation hedges. The move is also testing how durable demand will be as markets head into 2026 with expectations for U.S. interest-rate cuts. [2]
Spot silver was down 5.4% at $74.90 an ounce by 1148 GMT, after earlier hitting an all-time high of $83.62. [3]
Gold fell 1.9% to $4,448.23 an ounce, after hitting a record $4,549.71 on Friday, Reuters data showed. [4]
Platinum slid 6.5% to $2,291 an ounce after touching a record $2,478.50, while palladium dropped 13% to $1,674.25. [5]
“This morning’s (gold) price decline, which follows record highs, is attributable mainly to traders taking profits ahead of the year-end,” said Ricardo Evangelista, an analyst at ActivTrades. [6]
He added that optimism from the U.S. administration about progress in Ukraine peace talks also weighed on haven demand — buying driven by investors seeking perceived safety during conflict or market stress. [7]
President Donald Trump said on Sunday he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to an agreement to end the war in Ukraine, Reuters reported. [8]
Markets are now focused on the release of minutes from the Federal Reserve’s December meeting, due Tuesday, for insight into the policy outlook. [9]
Traders are pricing in two rate cuts in 2026, Reuters reported. Lower rates tend to support gold and silver because they are “non-yielding” assets — they do not pay interest — making them relatively more attractive when borrowing costs fall. [10]
The pullback comes after steep gains this year. Gold has risen about 72% in 2025, helped by a softer U.S. monetary policy backdrop, dollar weakness, geopolitical friction and central bank buying, Reuters said. [11]
Silver has gained 181% year-to-date, driven by supply shortages, investment demand and stronger industrial appetite, with Reuters also citing its designation as a U.S. “critical mineral,” a label used for materials seen as vital to the economy and national security. [12]
Earlier in the rally, a surge in precious metals pushed spot silver above $77 an ounce, while gold and platinum hit records on expectations of Federal Reserve easing and ongoing geopolitical tension, Reuters reported on Friday. [13]
Retail investors have also turned more bullish. A Kitco survey published late Friday said 57% of retail respondents expected silver to trade above $100 an ounce in 2026, though some experts flagged downside risks if the run becomes too crowded. [14]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.kitco.com
