London, December 29, 2025 – Precious metals retreated on Monday after a stellar rally throughout 2025, with investors engaging in profit-booking amid easing geopolitical tensions. Spot gold fell 0.4% to $4,512.30 per ounce as of 0426 GMT, down from a record high of $4,549.71 hit on Friday. US gold futures also declined 0.4% to $4,535.10. The pullback comes despite gold’s impressive 72% year-to-date gain, driven earlier by central bank buying, ETF inflows, and expectations of US rate cuts.
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Silver, however, showed resilience, rising 0.7% to $79.68 per ounce after retreating from an all-time high of $83.62 earlier in the session. The white metal has surged 181% in 2025, outperforming gold due to supply shortages, low inventories, its status as a critical US mineral, and booming industrial demand from sectors like solar energy and electronics.
Reasons Behind the Retreat and Analyst Views
KCM Trade Chief Market Analyst Tim Waterer attributed the dip to “a combination of profit-taking and seemingly productive talks between Trump and Zelensky regarding a potential peace deal,” which reduced safe-haven demand. US President Donald Trump noted on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to ending the Ukraine war. This cooled geopolitical tailwinds that had fueled the rally.
Platinum dropped 1.5% to $2,421.35 after touching a record $2,478.50, while palladium plunged 6% to $1,807.59. Traders await the Federal Reserve’s December meeting minutes for further policy clues, with expectations of two rate cuts in 2026 supporting non-yielding bullion in a low-rate environment.
Outlook Remains Bullish for 2026.
Waterer remains optimistic, suggesting gold could reach $5,000 next year with a dovish Fed shift, while silver might hit $100 amid continued industrial appetite and supply constraints. The 2025 rally marks one of the strongest years for precious metals since 1979, highlighting their role as hedges against uncertainty.