Gold and silver smash records as rally gathers momentum
Gold, silver and platinum jumped to record highs to extend a historic end-of-year rally for precious metals.
By Robin Paxton, Preeti Soni and Yvonne Yue Li
December 28, 2025 — 4.00pm
Gold, silver and platinum jumped to record highs, extending a historic end-of-year rally for precious metals, with support from escalating geopolitical tensions, US dollar weakness and thin market liquidity.
Spot gold rose as much as 1.6 per cent to a peak above $US4540 ($6759) an ounce on Friday. Spot silver for immediate delivery advanced for a fifth session, climbing as much as 7.6 per cent to cross $US77 ($114) an ounce.
Gold has gained around 70 per cent this year and silver more than 150 per cent.
Frictions in Venezuela, where the US has blockaded oil tankers and ramped up pressure on the government of Nicolas Maduro, have added to the precious metal’s haven appeal. Washington also launched a military strike against Islamic State in Nigeria in collaboration with the African nation’s government.
“Intensifying geopolitical tensions continued to underpin demand for safe-haven assets”, including gold and silver, said Daniel Takieddine, chief executive officer at Sky Links Capital Group. Year-end thin market liquidity also amplifies price swings, according to Takieddine.
The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was down 0.7 per cent for the week, its biggest drop since June. A weaker dollar is generally supportive of gold and silver.
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Gold has gained around 70 per cent this year and silver more than 150 per cent, with both metals on track for their best annual performances since 1979. The scorching rally has been supported by elevated central bank purchases, inflows to exchange-traded funds, as well as three successive interest-rate cuts by the US Federal Reserve. Lower borrowing costs are a tailwind for precious metals, which don’t pay interest, and traders are betting on more rate cuts in 2026.
US President Donald Trump’s aggressive moves to remake global trade, along with threats to the Federal Reserve’s independence, added momentum to the rally earlier this year. Investor demand has also been underpinned by the so-called debasement trade as concerns over swelling debt loads drive a retreat from sovereign bonds and the currencies they are issued in.
Gold’s resilience was demonstrated by its quick recovery after retreating from a previous peak of $US4381 in October, when the rally was seen as overheated. Heavy ETF buying has been a major driver of the latest surge, with holdings in State Street’s SPDR Gold Trust — the biggest precious-metals ETF — rising by more than a fifth this year.
