Gold prices held steady on Wednesday, capping a historic year that saw the precious metal on track for its strongest annual gain in more than four decades.
Spot gold was unchanged at $4,345.75 per ounce as of 0404 GMT, after reaching a record high of $4,549.71 last Friday. US gold futures for February delivery slipped 0.5% to $4,365.00 per ounce.
Bullion has surged 66% in 2025, marking its largest yearly increase since 1979, when prices soared amid geopolitical upheaval such as the Iranian revolution. This year’s rally has been fueled by a combination of US interest rate cuts, expectations of further monetary easing by the Federal Reserve, ongoing geopolitical tensions, robust central bank buying, and increased holdings in gold-backed exchange-traded funds.
Despite gold’s resilience, other precious metals saw sharp declines as investors locked in profits following a record-setting rally. Spot silver dropped 4.5% to $73.06 per ounce on Wednesday, after hitting an all-time high of $83.62 earlier in the week.
Silver has gained more than 150% year-to-date, making 2025 its best year on record. The metal’s meteoric rise has been supported by its designation as a critical US mineral, supply shortages, low inventories, and strong industrial and investment demand.
Platinum also retreated, falling 6.1% to $2,065.80 per ounce after reaching a lifetime high of $2,478.50 on Monday. The metal is up over 120% for the year, its strongest annual performance ever. Palladium declined 7.1% to $1,496.75 per ounce but is still set to close 2025 up 65%, its best showing in 15 years.
Analysts attributed the recent pullback in precious metals to technical factors and thin holiday trading. “CME announced an increase in margins on metals futures and that was a very painful adjustment for precious metals on Monday. It seems we have very thin markets here with the holidays,” said Ilya Spivak, head of global macro at Tastylive.
A stronger US dollar, which hit a one-week high, also weighed on dollar-priced bullion, making it more expensive for holders of other currencies. Minutes from the Federal Reserve’s December meeting indicated policymakers would only cut rates after extensive debate, though traders expect two more reductions next year. Low interest rates typically benefit non-yielding assets like gold.
Looking ahead, some analysts believe gold could test the $5,000 mark by the end of the first quarter of 2026, as the factors driving this year’s rally appear to be self-sustaining.
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