KARACHI – Precious metals market turned into a gripping financial drama. Bullion, long seen as safe haven in times of uncertainty, surged with a force not witnessed in nearly half a century, brushing past record highs and stunning investors around the world.
Silver also staged an even more breathtaking rise, racing ahead at pace never seen before. What began as steady climb fueled by global tensions and shifting interest rates has now become a historic rally, one marked by dizzying highs, sudden pullbacks, and the sense that the metals story of this year will be remembered for decades.
Spot gold was steady at $4,345.75 per ounce as of 0404 GMT after hitting a record high of $4,549.71 on Friday.
US gold futures delivery lost 0.5% to $4,365.0/oz. Bullion has climbed 66% in 2025, marking its largest annual gain since 1979 when prices were driven higher by geopolitical factors, including the Iranian revolution.
Gold’s rally has been driven by 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. However, analysts said that recent declines in precious metals were linked to technical factors alongside thin trading.
US dollar rose to a more than one-week high, making greenback-priced bullion more expensive for other currency holders. Minutes from the Fed’s December meeting showed policymakers agreed to cut interest rates only after a deeply nuanced debate, though traders expect two more reductions next year.
“Maybe towards the end of the first (quarter of 2026), we could see (gold) test $5,000. Certainly, it seems like the sort of catalysts animating gold, especially over the course of the past year, have become self-sustaining,” Spivak said. Spot silver fell 4.5% to $73.06 per ounce on Wednesday after hitting an all-time high of $83.62 on Monday.
Spot platinum shed 6.1% to $2,065.80 per ounce after rising to a lifetime high of $2,478.50 on Monday. It is up over 120% for the year, its strongest gain ever. Palladium fell 7.1% to $1,496.75 per ounce, set to close the year up 65%, its best performance in 15 years.
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