Precious metals markets witnessed a historic surge on Monday, December 28, with silver prices breaking the critical $80 per ounce barrier and platinum scaling a new peak. The rally is fueled by a potent mix of supply concerns, robust industrial demand, and growing anticipation of further interest rate cuts in the United States.
Metals Shine: Silver and Platinum Steal the Show
Spot silver experienced a dramatic jump of 3.8% to $82.15 per ounce, after touching an unprecedented high of $83.62 earlier in the trading session. This remarkable ascent marks a staggering year-to-date gain of 181% for silver, significantly outperforming its traditional rival, gold. The white metal's inclusion on the U.S. critical minerals list, coupled with tight supplies and dwindling inventories, has created a perfect storm for prices.
Meanwhile, platinum also entered record territory, climbing to an all-time high of $2,478.50 per ounce before settling at $2,429.10, down 0.8% for the day. Palladium saw a modest increase of 0.1% to $2,003.83.
Gold Holds Ground Near Record Highs
Gold, the traditional safe-haven asset, maintained its strength near record levels. Spot gold was quoted at $4,527.79 per ounce as of 1152 GMT, a slight dip of 0.1%. This follows its record-setting performance in the previous session, where it hit $4,549.71 per ounce. U.S. gold futures for February delivery were steady at $4,553.10.
The bullion market has enjoyed a spectacular rally in 2025, with prices climbing 72% so far and shattering multiple records. This surge is supported by several key factors:
- The U.S. Federal Reserve's interest rate cuts and expectations of further monetary easing.
- Ongoing geopolitical tensions, including remarks from U.S. President Donald Trump about progress toward an agreement to end the war in Ukraine.
- Strong demand from central banks diversifying reserves away from U.S. dollar assets.
- Increased holdings in gold-backed exchange-traded funds (ETFs).
Macroeconomic Winds Favor Precious Metals
The broader financial landscape continues to create a favorable environment for non-yielding assets like gold and silver. The U.S. dollar remained near two-month lows, making dollar-priced metals cheaper for holders of other currencies. Furthermore, traders are widely expecting two additional U.S. rate cuts in the coming year. A low-interest-rate environment reduces the opportunity cost of holding assets that do not offer regular interest payments, thereby boosting their appeal.
The combination of strategic industrial demand, investment inflows, and a supportive macroeconomic policy backdrop suggests the precious metals rally may have further room to run. Market participants will closely watch central bank signals and geopolitical developments for future direction.
