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. Reuters
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. Reuters
Spot silver was down 5.4% at $74.90 an ounce by 1148 GMT, after earlier hitting an all-time high of $83.62. Reuters
Gold fell 1.9% to $4,448.23 an ounce, after hitting a record $4,549.71 on Friday, Reuters data showed. Reuters
Platinum slid 6.5% to $2,291 an ounce after touching a record $2,478.50, while palladium dropped 13% to $1,674.25. Reuters
“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. Reuters
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. Reuters
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. Reuters
Markets are now focused on the release of minutes from the Federal Reserve’s December meeting, due Tuesday, for insight into the policy outlook. Reuters
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. Reuters
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. Reuters
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. Reuters
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. Reuters
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. Kitco
