On December 26, 2025, precious metals markets witnessed extraordinary gains, with spot silver surging past the $75 mark for the first time ever, while gold and platinum also scaled fresh record peaks. This year-end rally underscores a historic bull run for the sector, driven by a confluence of speculative buying, monetary policy expectations, and escalating global risks.
Background:
Precious metals have long served as safe-haven assets and industrial commodities. Gold, traditionally viewed as a store of value, has benefited from central bank purchases and de-dollarization trends. Silver, with its dual role in investment and industry (particularly solar panels, electronics, and EVs), has faced structural supply deficits. Platinum and palladium, key in automotive catalytic converters, have grappled with tight mine supplies amid shifting demand dynamics. In 2025, the sector exploded: silver up 158% year-to-date, platinum roughly 165%, gold nearly 72%, and palladium over 90%. This marks gold’s biggest annual gain since 1979, fueled by Fed rate cuts, a weaker dollar, and geopolitical tensions. The latest surge comes amid thin holiday liquidity, amplifying momentum from early December.
Read More: https://theboardroompk.com/gold-price-in-pakistan-reaches-historic-high-amid-strong-domestic-demand/
Drivers Behind the Record-Breaking Surge
Speculative momentum and low year-end trading volumes have supercharged prices. Spot silver jumped 3.6% to $74.56 per ounce after hitting $75.14, while gold rose 0.6% to $4,504.79 (record $4,530.60), and platinum climbed 7.8% to $2,393.40 (peak $2,429.98). Palladium gained 5.2% to $1,771.14. Analysts attribute this to expectations of two more US rate cuts in 2026, a softer dollar, and heightened geopolitical risks, including US actions on Venezuelan oil and strikes in Nigeria.