NEW YORK: Silver breached the USD77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fuelled safe-haven demand.
Spot silver jumped 7.5 percent to USD77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of USD77.40 earlier today, marking a 167 percent year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2 percent at USD4,531.41 per ounce, after hitting a record USD4,549.71 earlier. US gold futures for February delivery settled 1.1percent higher at USD4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers. On the geopolitical front, the US carried out airstrikes against Islamic State militants in northwest Nigeria, Trump said on Thursday. “USD80 in silver is within reach by year-end. For gold, the next objective is USD4,686.61, with USD5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8 percent to USD2,437.72 per ounce, having earlier hit a record high of USD2,454.12 while palladium surged 14 percent to USD1,927.81, its highest level in more than three years. All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
