Precious metals rise early in 2026 on rate cut bets and safe-haven demand
Elsewhere, physical gold traded at a premium in India and China for the first time in about two months. Spot silver advanced 0.7% to $71.77/oz, after hitting an all-time high of $83.62 on Monday.
Precious metals began the first trading session of the New Year by building on the major gains of 2025 as geopolitical tension and expectations of US rate cuts keep demand for gold high.
Spot gold was steady at $4,313.29 per ounce as of 01:46pm ET (1846 GMT), after rising as high as $4,402.06 earlier in the session. Bullion hit a record high of $4,549.71/oz on 26 December and logged a 64% rise in 2025.
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US gold futures for February delivery settled 0.3% lower at $4,329.6/oz. "We are continuing to see the market talk about cuts in March and maybe another cut later this year... that combination with significant talk about markets potentially being at risk with tariffs and continued US debt are all kind of moving gold, silver, platinum, and palladium higher," said Bart Melek, global head of commodity strategy at TD Securities.
Markets anticipate at least two quarter-point Fed rate cuts, making non-yielding gold more attractive to investors. Gold, a traditional safe-haven asset, was also supported by news of unrest in Iran and the absence so far of a Russia-Ukraine peace deal, as well as issues surrounding Gaza. "Technically, February gold futures bulls' next upside price objective is to produce a close above solid resistance at the contract/record high of $4,584," Jim Wyckoff, senior analyst at Kitco Metals, said in a note.
Elsewhere, physical gold traded at a premium in India and China for the first time in about two months. Spot silver advanced 0.7% to $71.77/oz, after hitting an all-time high of $83.62 on Monday.
Platinum jumped 3.5% to $2,125.80/oz, after rising to an all-time high of $2,478.50, also on Monday. Both metals outperformed gold in 2025, with silver rising over 147%, driven by its designation as a critical US mineral, supply shortages, and low inventories when industrial and investment demand was strong. Platinum rose 127% last year.
Palladium gained nearly 2% to $1,636.43 per ounce, after closing the previous year up 76%, its biggest gain in 15 years. Following the end-of-year rally, all precious metals are set to post weekly losses.
