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Gold and silver prices climbed sharply in U.S. midday trading, with silver surging to a new all-time high near 66.65 while gold advanced above 4,360. Strong safe-haven demand and technical buying supported both metals as geopolitical tensions intensified. Silver has gained nearly 130 percent so far this year, driven by tightening inventories and sustained demand from industrial and retail sectors, particularly solar energy, electric vehicles, and data centres. Gold also benefited from the risk-off environment, despite a firmer U.S. dollar and steady Treasury yields.
Heightened geopolitical risks fuelled the move into precious metals as the U.S. escalated pressure on Venezuela by blocking sanctioned oil tankers and increasing its military presence in the region, while also signalling potential new sanctions on Russian energy exports if peace efforts with Ukraine fail. Crude oil prices rebounded on the Venezuela actions and the prospect of further supply constraints tied to Russia. Broader markets reflected this tension, with oil trading in the mid-50s per barrel range and investors continuing to favour hard assets amid uncertainty surrounding global energy supplies and international relations. Source
Silver prices broke above 66 an ounce for the first time, reaching a new record as strong momentum carried the metal nearly 4 percent higher on the day, while gold rose close to 1 percent. Silver has now gained about 129 percent this year, significantly outperforming gold’s roughly 65 percent annual rise, as investors rotated into silver and other precious metals. Platinum and palladium also advanced sharply, with platinum hitting its highest level in more than 17 years, underscoring broad strength across the metals complex.
Gold was supported by signs of a softening U.S. labor market, with unemployment climbing to its highest level since late 2021 despite modest job growth. The data reinforced expectations that the Federal Reserve could deliver additional interest rate cuts in 2026, a backdrop that tends to favour non-yielding assets such as gold. Safe-haven demand was further boosted by rising geopolitical tensions after the U.S. announced a blockade of sanctioned oil tankers linked to Venezuela. Markets are now focused on upcoming U.S. inflation data, including the Consumer Price Index and the Personal Consumption Expenditures index, for further clues on the direction of monetary policy. Source
Gold prices pushed higher and held above 4,300 as fresh U.S. economic data signalled renewed weakness in the manufacturing sector, supporting safe-haven demand. The New York Federal Reserve’s Empire State Manufacturing Survey unexpectedly fell into contraction territory in December, reversing a strong expansion seen the previous month and coming in well below market expectations. The disappointing data added to overnight gains in gold, with spot prices rising nearly 1 percent as investors responded to increased economic uncertainty.
Details within the survey pointed to broad-based softness, with new orders flattening and shipments turning negative after solid growth in November. At the same time, inflationary pressures showed signs of easing, as the prices paid component declined notably, suggesting slower cost increases for manufacturers. While firms expressed improved optimism about future conditions, the combination of slowing activity and cooling inflation reinforced gold’s appeal as markets weighed the risks of a volatile economic outlook. Source
Silver prices above 63 an ounce are being underpinned by expectations of sustained long-term industrial demand, according to a new report from the Silver Institute prepared by Oxford Economics. The report highlights silver’s essential role in the electrification of the global economy, citing its superior electrical and thermal conductivity as critical to expanding technologies such as solar energy, electric vehicles, data centres, and artificial intelligence. Industrial consumption forecasts were raised as these sectors are expected to drive demand growth well into the next decade.
Solar energy remains the largest source of industrial silver demand, growing from 11 percent of total demand in 2014 to 29 percent today, with continued global expansion expected to outweigh reductions in silver usage per panel. Electric vehicles represent the second-largest growth area, with automotive silver demand forecast to rise steadily as EVs use significantly more silver than traditional vehicles. Additional demand is expected from the rapid expansion of data centres supporting AI, as global IT power capacity has surged dramatically over the past two decades. With silver still a relatively small cost component in these industries, analysts see industrial demand continuing to support a long-term bullish price trend. Source
Gold is expected to continue outperforming U.S. bonds and the dollar through 2026, prompting Société Générale to maintain a maximum 10 percent allocation to the metal in its multi-asset portfolio. The bank is keeping its gold exposure unchanged while cutting holdings in U.S. inflation-linked bonds to zero and reducing corporate bond exposure, reflecting confidence in gold’s resilience as interest rates fall. Analysts said broader asset performance has already benefited portfolios and expect this trend to persist as U.S. monetary policy becomes more accommodative.
Société Générale reiterated its forecast for gold prices to reach 5,000 an ounce by the end of 2026, supported by continued retail investment, central bank diversification away from U.S. dollar assets, and gold’s effectiveness as a hedge against multiple risks. The bank expects easing inflation alongside growing labor market risks to push the Federal Reserve toward further rate cuts, gradually loosening financial conditions. In addition to potential price gains, gold is viewed as an important portfolio diversifier as correlations between U.S. equities and bonds remain elevated, strengthening the case for holding the metal over the coming years. Source
Gold prices remained steady above 4,300 an ounce as mixed U.S. labor market data reinforced signs of economic slowing despite headline job growth beating expectations. The U.S. economy added 64,000 jobs in November, surpassing forecasts, but the unemployment rate unexpectedly rose to 4.6 percent, pointing to cooling momentum in employment conditions. Revisions to prior months further underscored this trend, with August job figures revised into contraction territory and September payrolls marked lower. Gold initially saw volatility following the data release before stabilizing near unchanged levels on the day.
Additional pressure came from weaker-than-expected wage growth, with average hourly earnings rising just 0.1 percent, the slowest pace since March 2024. While softer wages may reduce inflation concerns and temper gold’s appeal as an inflation hedge, economists broadly believe the data will not prevent the Federal Reserve from cutting interest rates next year. Markets are currently pricing in multiple rate cuts in 2026, a backdrop that typically supports gold by lowering opportunity costs, though some analysts warn of near-term downside risks amid potential dollar strength and reduced inflation fears. Source
U.S. employment data surprised to the upside in November, with job creation exceeding expectations, but underlying details pointed to a cooling labor market. Payrolls rose by 64,000, beating forecasts, though the unemployment rate edged up to 4.6%, signalling softening conditions. Revisions to prior months showed deeper weakness than initially reported, including a sharper job contraction in August and lower gains in September. Wage growth also disappointed, with average hourly earnings rising just 0.1%, below expectations, suggesting slowing income momentum that could weigh on consumer spending despite steady employment levels.
Broader economic indicators reinforced signs of deceleration, as S&P Global’s PMI data showed slowing activity across both services and manufacturing, though both remained in expansion territory. Financial markets reflected this mixed outlook, particularly in precious metals. Platinum surged sharply on renewed industrial and safe-haven demand, while silver eased modestly but held near historically high levels following a strong rally. Gold traded relatively flat at elevated prices, reflecting investor uncertainty as strong job creation was offset by rising unemployment and weaker wages. Together, these movements suggest markets are balancing fading economic momentum with ongoing demand for hedges and industrial inputs. Source
Gold and silver may be approaching the end of a long-term cycle that began after the 2015–2016 lows, according to technical analyst Avi Gilburt, who argues that the powerful multi-year rally is now in its late stages. While prices could still rise further in the months ahead, he believes the broader structure points toward exhaustion rather than a new secular bull market. Gold is currently holding above key support near 4,300, but resistance around 4,383 remains critical. A failure to break higher could trigger a pullback toward 3,800, which Gilburt views as a potential buying opportunity ahead of one final rally. Even if gold pushes toward the 5,000 area, he expects that move to precede a prolonged multi-year decline that could eventually drive prices back toward 2,000.
Silver’s outlook remains more volatile, with the metal already meeting minimum long-term targets but still showing potential for a final surge. Gilburt sees a possible path toward 75 to 80 if the market experiences a controlled pullback toward the low-to-mid 40s before year-end, setting the stage for a blow-off top similar to the 2010–2011 cycle. He dismisses fundamental narratives as largely irrelevant, emphasizing that metals move in technical waves independent of macro themes. Beyond precious metals, he warns of rising risks across bonds, equities, and the banking system, expecting higher yields, deflationary asset declines, and potential financial stress. His view suggests investors should remain aware of near-term upside but recognize that by 2026 the risk-reward balance for gold and silver could shift sharply toward a sustained bear market. Source
Gold’s sharp rise this year has pushed prices above new support near 4,300, but portfolio manager Eric Strand argues the move is far from over and that higher levels in 2026 should be viewed as part of a longer trend rather than an endpoint. He sees 5,000 as a realistic milestone within the next year and believes gold remains undervalued relative to long-term monetary pressures, including rising government debt, persistent deficits, and the growing likelihood of renewed monetary expansion. Strand points out that institutional exposure to gold remains minimal, suggesting significant room for increased allocations as bonds lose appeal and gold regains relevance as an alternative monetary asset rather than simply an inflation hedge.
While gold prices have led the narrative, Strand believes the strongest return potential lies in mining equities, which he sees as undervalued relative to both the metal and their historical performance. He notes that many producers are now financially disciplined, prioritizing debt reduction, dividends, and share buybacks, while limited new mine development constrains future supply. He also highlights silver as an overlooked opportunity due to its combined monetary and industrial role, with a tightening gold-silver ratio implying substantial upside over time. Strand expects growing investor participation to drive a broader re-rating of miners by 2026, arguing that diversification across a wide range of mining stocks is essential to manage risk in what he sees as a return-driven, not merely defensive, phase for precious metals. Source
Image Source: Kitco News
Precious metals have extended a powerful rally as gold trades just below record highs and silver reaches new all-time peaks, driven by a cooling US labor market, expectations for future Federal Reserve rate cuts, and heightened geopolitical tensions. Silver has dramatically outperformed gold in 2025, posting gains near 130 percent compared with gold’s roughly 65 percent advance, as investors seek protection against economic slowdown and currency debasement. A rising unemployment rate has reinforced expectations of looser monetary policy, boosting demand for metals as alternative assets, while gold continues to benefit from strong central bank buying, ETF inflows, and a broader shift away from traditional bonds and currencies.
Beyond macro drivers, silver’s surge is underpinned by structural supply deficits and an unusual shift in futures market dynamics. Global mine supply has stagnated while industrial demand from solar, electric vehicles, and data centers continues to rise, creating persistent shortages and tightening inventories. Silver futures trading volume has climbed close to gold’s, an uncommon development that signals growing recognition of silver as a macro asset rather than a niche or purely speculative metal. The compression of the gold-silver ratio toward its long-term average suggests silver may still be undervalued relative to gold, with historical precedents implying further upside if current trends persist amid abundant liquidity and elevated geopolitical risk. Source
Gold enters 2026 on a stable footing after an extraordinary 2025 rally, which saw the metal reach 48 all-time highs driven by geopolitical tensions, central-bank buying, and investor concerns over economic and political uncertainty. While the pace of gains has moderated, prices remain elevated, signaling a structural re-rating of gold’s role in investment portfolios rather than a speculative bubble. Analysts expect gold to trade mostly between $4,500 and $5,000 per ounce in 2026, with limited downside risk and potential upside in the latter half of the year, reflecting persistent demand amid ongoing uncertainty.
Investor behavior is shifting toward strategic allocations, with typical portfolio holdings increasing from 2–5% to 5–10%, positioning gold as a core diversifier rather than solely a crisis hedge. Central banks are expected to continue supporting the market, with projected purchases around 750 tonnes in 2026, sustaining the narrative that significant official-sector buying underpins investor confidence. Emerging-market central banks, in particular, are seeking to diversify reserves, reduce dollar exposure, and protect against sanctions, reinforcing a durable foundation for gold demand. Source
Precious metals had a stellar 2025, with gold and silver rising more than 65% and 100% respectively, and BMO Capital Markets projects further gains into 2026. Gold is expected to average around $4,550 an ounce for the year, with highs near $4,600 in the first half, supported by falling interest rates, inflation concerns, and ongoing monetary debasement fears. Despite strong performance across the sector, gold is anticipated to outperform other metals due to its enduring role as a safe haven and portfolio diversifier, bolstered by global dedollarisation trends that encourage central banks and investors to reduce reliance on the US dollar.
Silver has also seen its 2026 forecast raised by 14% to $56.3 an ounce, reflecting stronger-than-expected investor demand and its designation as a critical mineral. The metal is currently trading above $65 an ounce, but analysts caution that silver and platinum show signs of being overbought, and their market deficits are narrowing compared with gold. While silver can offer high leverage during price rallies, gold’s macroeconomic support and strategic demand drivers, including geopolitical and monetary dedollarisation, position it as the more resilient and likely outperforming precious metal in the year ahead. Source
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.
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