NEW YORK, December 28, 2025, 19:02 ET
- Spot silver jumped about 9% on Dec. 26 and hit a record $78.53 an ounce, alongside fresh highs in gold and platinum.
- Traders have pointed to expected U.S. rate cuts in 2026, a softer dollar and geopolitical tensions lifting demand for non-interest-bearing assets.
- Retail buying of physical silver and activity in silver-backed funds has surged, The Wall Street Journal reported.
Spot silver, the cash price for immediate delivery, jumped about 9% on Friday, Dec. 26 and hit a record $78.53 an ounce, while gold and platinum also set new highs.
The move capped a year-end rush into precious metals as traders priced in U.S. interest-rate cuts in 2026 and sought protection from geopolitical risk, boosting demand for assets that do not pay interest.
Silver’s surge matters because it is both an investment and an industrial metal used in electronics and solar panels, and its smaller market can swing sharply when liquidity is thin.
Silver is up about 167% year-to-date, outpacing gold’s roughly 72% rise and leaving other asset classes behind in the late-year scramble for inflation hedges.
The metal first cleared $75 an ounce early on Dec. 26 before extending gains later in the session.
Spot gold touched an all-time high of $4,549.71 per ounce and was last around $4,531, while U.S. February gold futures settled at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. Reuters
Markets were anticipating two Fed rate cuts in 2026, with the first seen around mid-year, amid speculation President Donald Trump could appoint a more dovish central-bank chief — inclined toward lower rates.
The U.S. dollar index was on track for a weekly decline, a tailwind for dollar-priced metals because it makes them cheaper for buyers using other currencies.
On the supply side, traders have pointed to persistent deficits — when demand outstrips supply — along with silver’s designation as a U.S. critical mineral and rising investment inflows.
Demand is not only financial. The Wall Street Journal said industrial buyers, especially solar panel manufacturers, have competed for supply as everyday investors stockpile coins, bars and other products.
The paper also reported that options activity tied to the iShares Silver Trust — an exchange-traded fund that gives investors exposure to silver — has climbed to its highest level since 2021.
Chris Pollock, founder and managing partner of Canada Gold, told the Journal that ounces of silver sold in December were up about 150% from a year earlier.
Platinum hit a record $2,454.12 an ounce after a roughly 10% jump, and palladium rose more than 14% to about $1,924. Both are widely used in automotive catalytic converters, which reduce exhaust emissions.
In physical markets, rising prices have curbed some buying. Gold discounts in India widened to their highest in more than six months as the rally cooled retail demand.
All the main precious metals posted weekly gains, and gold was set for its strongest annual rise since 1979, supported by expectations of Fed easing, central bank buying and inflows into metal-backed funds.
