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Gold prices were near steady in midday U.S. trading after giving up sharp early gains as profit-taking and weak long liquidation emerged among short-term futures traders, while silver held on to most of its strong overnight advance. February gold slipped slightly to around $4,327, while March silver climbed to about $63.28. Reports suggesting progress in Russia-Ukraine peace talks helped reduce risk aversion in broader markets, putting some pressure on gold. Global stock markets were mixed, with U.S. indexes weaker near midday after losing earlier gains.
In other developments, China’s CMOC Group agreed to a $1 billion deal to acquire Equinox Gold’s Brazilian operations, giving CMOC full ownership of several producing mines and deposits, with the transaction expected to close in the first quarter of next year. In outside markets, the U.S. dollar index edged lower, crude oil traded down near $56.50 a barrel, and the 10-year U.S. Treasury yield hovered around 4.184%. Technically, gold futures continued to show strong bullish structure despite consolidation, while silver maintained an even stronger technical posture with higher upside objectives still in view. Source
Gold prices eased from earlier highs as signs of progress in talks between U.S. officials and Ukrainian President Volodymyr Zelenskiy reduced safe-haven demand, while investors waited for key U.S. economic data. Spot gold was modestly higher near $4,310 an ounce after climbing more than 1% earlier, with U.S. futures settling slightly higher as well. Analysts noted that alongside easing geopolitical risk, profit-taking and extended liquidation by traders who entered earlier positions have added pressure to prices. Market attention has shifted toward upcoming U.S. non-farm payrolls and retail data, which could influence expectations for Federal Reserve policy, with markets currently pricing a strong probability of a rate cut in early 2026.
Silver continued to outperform the broader precious metals complex, rising sharply to above $63 an ounce and remaining close to the $65 level after recently hitting record highs. Platinum surged to its highest level since 2011, while palladium climbed to a two-month-high amid supply concerns. Russia’s Nornickel indicated the palladium market could face a deficit this year when investment demand is included, supporting prices. Overall, while easing geopolitical tensions have weighed on gold, strength across other precious metals reflects tight supply dynamics and sustained investor interest. Source
India’s gold investment demand surged in the third quarter as record-high prices discouraged jewelry buying but encouraged investors to increase allocations to bars and coins. Investment demand rose 20% year over year to 91.6 tonnes, while its value jumped 67% to $10.2 billion, the highest on record. Overall gold consumption fell 16% to 209.4 tonnes as jewelry demand dropped sharply, but investment demand accounted for 40% of total consumption in the first nine months of 2025, the largest share ever recorded. The World Gold Council expects investor interest to continue building, with fourth-quarter demand projected to exceed the third quarter despite total physical demand for 2025 likely falling to between 600 and 700 tonnes, the lowest level since 2020.
Physically backed gold exchange-traded funds are also gaining traction as inflows hit record levels in September, reflecting strong investor appetite during the precious metals rally. This trend is expected to accelerate following regulatory changes allowing Indian pension funds to invest in gold and silver ETFs. The pension regulator has updated guidelines to permit government-sector funds to allocate up to 1% of assets under management to these ETFs, while private-sector pension funds can invest up to 5%. In addition, pension subscribers are now allowed broader equity exposure by investing in the top 250 listed companies, expanding diversification options alongside precious metals. Source
Gold is on track to post a roughly 60% gain this year, its strongest annual performance in decades, driven by geopolitical uncertainty, loose fiscal policies, and sustained demand as a portfolio hedge. Analysts broadly agree the bullish trend can continue into 2026, but with more moderate returns. Standard Chartered expects gold to average around $4,500 an ounce over the next year, while several banks see prices reaching as high as $5,000, implying slower gains compared with the explosive rallies of 2024 and 2025. While valuations appear stretched by some measures, many strategists argue that recent price corrections offer opportunities for investors who remain underallocated, supported by strong technical structures and persistent macro risks.
Long-term support for gold continues to come from central banks, which have added more than 3,000 tonnes to reserves over the past three years amid rising geopolitical fragmentation and efforts to reduce reliance on the U.S. dollar. Gold now represents a larger share of global reserves than U.S. Treasuries, and analysts believe allocations could rise further. Looking ahead, expectations of interest rate cuts, sticky inflation, and high correlations between stocks and bonds are likely to draw more retail investors toward gold as a diversification and risk-hedging tool. While few expect another year of outsized gains, most analysts remain confident that gold’s next major move remains higher rather than lower. Source
Image Source: Kitco News
Precious metals moved higher as weak U.S. manufacturing data revived expectations for further Federal Reserve rate cuts and pressured the dollar, boosting demand for non-yielding assets. Silver led the rally, jumping more than 3% to near $64 an ounce, while gold traded around $4,323, close to recent highs. The sharp outperformance of silver narrowed the gold-silver ratio, highlighting increased investor appetite for the more volatile metal. The catalyst came from a steep decline in the Empire State Manufacturing Survey, which showed New York manufacturing activity slipping into contraction and falling well short of forecasts, reinforcing expectations for easier monetary policy.
Beyond macroeconomic drivers, silver’s strength has been underpinned by tight physical supply and strong industrial demand from sectors such as solar power, electric vehicles, and data centres, alongside its growing strategic importance as a critical mineral. While both metals pulled back slightly from last week’s record levels amid profit-taking, the broader backdrop remains supportive, with central bank gold buying, ETF inflows, and ongoing economic uncertainty sustaining investor interest. Markets are now focused on upcoming U.S. jobs and inflation data, which could further shape expectations for rate cuts in 2026, even as some analysts warn of near-term volatility after silver’s rapid gains. Source
Gold is maintaining strong upward momentum as expectations grow that slowing economic activity and muted inflation will push the Federal Reserve toward aggressive interest rate cuts next year. Prices are testing resistance near 4,300 dollars an ounce and are on pace for another record weekly close, supported by a weaker U.S. dollar, central bank buying, and growing confidence that monetary policy will turn more accommodative. Analysts see the broader trend remaining bullish, with higher price targets in view if current resistance levels are cleared, reinforcing the case for buying pullbacks rather than chasing short-term rallies.
Despite the constructive outlook, analysts warn that volatility could increase due to thin holiday trading conditions and a heavy slate of economic data. Low liquidity could exaggerate price swings, especially if gold breaks below key support levels, though dips are still viewed as buying opportunities while the broader uptrend holds. U.S. employment and inflation data, along with central bank meetings from the Bank of England and the European Central Bank, could influence short-term direction, particularly through their impact on the U.S. dollar and interest rate expectations heading into the end of the year. Source
Image Source: Kitco News
Gold and silver both ended the week at record levels, with silver significantly outperforming across the precious metals complex. Silver futures closed up 5.68% on the week at 62.13 dollars, marking a record weekly close, while gold futures rose 2.45% to around 4,332 dollars, also their highest weekly close on record. Palladium posted the largest percentage gain, rising nearly 7% and briefly touching price levels last seen in 2011. Silver’s surge has been especially pronounced, delivering gains of nearly 25% over the past three weeks and more than doubling in value for the year, far outpacing gold’s strong but comparatively smaller annual advance.
Despite a sharp pullback on the final day of the week, silver’s broader trend remains constructive, with sustained open interest and unusually high trading volume for the holiday season suggesting momentum has not fully dissipated. While further upside is possible, analysts caution that prices may struggle to extend far beyond the 70 dollar area after exceeding year-end targets, making near-term price action critical for determining whether a correction develops. Gold, meanwhile, continues to show steady participation and rising volume, signalling renewed interest as prices approach all-time highs. However, strong resistance near recent record levels remains evident, with intraday selling pressure highlighting the challenge of pushing decisively beyond current highs. Source
Precious metals delivered mixed performances this week, with silver and platinum stealing the spotlight while gold lagged despite remaining positive. Platinum rose over 6% to a 52-week high, supported by its growing role as a critical mineral in clean energy and industrial uses, alongside steady ETF inflows. Silver surged to a new record above 64 dollars an ounce, heading toward a roughly 10% weekly gain driven by strong ETF demand, speculative momentum, tight physical supply, and heavy options activity, sharply outperforming gold. Meanwhile, corporate developments such as Kinross Gold’s early repayment of 500 million dollars in senior notes underscored improving balance sheets across the sector, although such moves have limited immediate impact on production or cost pressures.
Gold underperformed relative to its peers, rising just over 2% as hawkish signals from U.S. Federal Reserve officials lifted long-term yields and dampened expectations for aggressive rate cuts beyond 2025. Additional pressure came from broader market weakness and shifting correlations, with gold showing less sensitivity to both Treasuries and the U.S. dollar than in prior years. Looking ahead, analysts see meaningful upside potential if institutional and retail allocations to gold ETFs rise, supported by policy changes such as India allowing pension funds to invest in gold and silver ETFs. However, risks remain, including warnings that silver prices may be overstretched, geopolitical and regulatory uncertainties around mining and exports, and social tensions tied to resource development in sensitive regions. Source
Gold prices pushed higher above 4,300 dollars as weaker-than-expected U.S. manufacturing data boosted demand for safe-haven assets. The New York Federal Reserve’s Empire State Manufacturing Survey showed activity slipping into contraction territory in December, falling sharply from the prior month and missing expectations by a wide margin. The disappointing data reinforced concerns about ongoing volatility in the manufacturing sector and added to gold’s overnight gains, with prices rising nearly 1% as investors reacted to signs of slowing economic momentum.
Details within the survey pointed to broad-based softness, with new orders flattening and shipments turning negative after strong readings in November. While overall activity weakened, the report also indicated easing inflation pressures, as the prices paid index declined for a second consecutive month, though it remained elevated. The combination of cooling economic activity and moderating price pressures strengthened gold’s appeal, as markets weighed the implications for growth and potential shifts in monetary policy expectations. Source
Silver prices have been driven higher by strong investment demand, and this is expected to continue providing long-term support alongside improving fundamentals. The Silver Institute, citing analysis by Oxford Economics, raised its outlook for industrial consumption, highlighting silver’s essential role in the electrification of the global economy due to its superior electrical and thermal conductivity. Industrial demand is expected to grow steadily through 2030 as technologies linked to clean energy, electric transport, and advanced computing expand, reinforcing expectations of a sustained bull market.
Solar energy remains the largest industrial driver, with its share of total silver demand rising from 11% in 2014 to 29% today, as rapid growth in photovoltaic installations more than offsets reductions in silver use per panel. Electric vehicles are the second-largest growth area, with automotive silver demand forecast to rise at a 3.4% annual rate from 2025 to 2031, supported by EVs using significantly more silver than internal combustion vehicles. Additional demand is expected from data centers and artificial intelligence, as global IT power capacity has surged dramatically since 2000, increasing the need for computing hardware and infrastructure that rely on silver. Source
Gold is expected to outperform U.S. bonds and the dollar through 2026, prompting Société Générale to maintain a 10% allocation to the metal in its multi-asset portfolio. The bank has reduced its exposure to U.S. inflation-linked bonds to zero and halved its corporate bond holdings, citing a challenging fixed income environment and dollar weakness. Analysts note that gold has benefited from retail investor interest through bars, coins, and ETFs, and its performance complements equity markets as part of a broadening asset diversification strategy amid falling U.S. interest rates.
The bank forecasts gold reaching $5,000 an ounce by the end of 2026, supported by expectations of dovish Federal Reserve policy and easing inflation pressures. SocGen highlights gold’s appeal as protection against multiple risks and as a portfolio diversifier given the historically high correlation between U.S. equities and bonds. Anticipated policy rate cuts and a cautious monetary tightening approach, influenced by inflation and employment considerations, are expected to sustain favorable conditions for gold’s performance. Source
In this week’s Live from the Vault, Andrew Maguire explores how rising physical demand and institutional buying are pushing silver through key inflection points, challenging mispriced Western benchmarks and shaping a new pricing landscape.
The London wholesaler comments on how BRICS-backed channels and short-squeeze dynamics are influencing global bullion flows, with physical demand from major institutions supporting prices as markets head into 2026.
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
Featured Image - Source: Unsplash
