Gold prices were steady on Wednesday and remained on track for their strongest annual performance in more than four decades, even as other precious metals posted sharp declines amid profit-taking following a record-breaking rally.
Gold prices
Spot gold was unchanged at $4,345.75 per ounce as of late evening, after touching an intraday record high of $4,549.7 on Friday. US gold futures for February delivery slipped 0.5% to $4,365 per ounce.
Gold has surged 66% so far in 2025, marking its biggest annual gain since 1979, when prices climbed sharply amid heightened geopolitical tensions, including the Iranian revolution.
The US dollar strengthened to a more than one-week high, making dollar-denominated bullion more expensive for investors using other currencies. Still, gold’s broader rally has been supported by interest rate cuts, ongoing geopolitical conflicts, strong central bank purchases, and rising inflows into exchange-traded funds.
Analysts said the recent pullback across precious metals was largely driven by technical factors and thin year-end trading conditions.
Spot platinum fell 6.1% to $2,065.8 per ounce after reaching a record high of $2,478.5 earlier in the week. Despite the drop, platinum is up more than 120% this year, marking its strongest annual gain on record.
Palladium declined 7.1% to $1,496.75 per ounce but remains on track to finish the year up 65%, its best performance in 15 years.
US interest rates
Minutes from the Federal Reserve’s December meeting showed policymakers agreed to cut interest rates only after extensive debate. However, traders continue to price in two additional rate cuts next year.
Lower interest rates typically support non-yielding assets such as gold, while economic and geopolitical uncertainty also tends to boost demand for the metal as a safe haven and store of value.
Silver prices
Spot silver dropped 4.5% to $73.1 per ounce after hitting a record high of $83.6 earlier in the week. Silver has gained more than 150% in 2025, significantly outperforming gold and posting a record annual increase.
Silver’s rally has been supported by its designation as a critical US mineral, supply constraints, low inventories, and rising industrial and investment demand.
What to watch for
Goldman Sachs expects gold prices to rise a further 6% through mid-2026, driven by renewed demand from key buyer groups that have helped propel the metal to successive record highs.
