Precious metals surged to historic highs on Friday with gold breaking above $4,500 per ounce and silver climbing past $75 as investors intensified allocations to safe-haven assets amid heightened geopolitical uncertainty and shifting macroeconomic expectations.
Gold extended its rally to a fresh record, supported by strong defensive demand and growing expectations that major central banks could move toward interest rate cuts in 2026.
Lower rate expectations typically enhance the appeal of non-yielding assets such as gold, while geopolitical risks continue to underpin safe-haven flows.
Silver also posted outsized gains, outperforming gold as investors increased exposure to metals with both monetary and industrial demand characteristics.
Market participants said silver’s move above $75 reflected a combination of speculative positioning, tight physical supply, and strong investment inflows.
Platinum joined the rally, rising to multi-year highs as supply constraints and improving demand expectations added to the broader momentum across the precious metals complex.
Analysts noted that the rally has been reinforced by persistent global uncertainty, including geopolitical tensions, uneven economic growth signals, and concerns around fiscal sustainability in major economies. These factors have pushed investors toward assets perceived as stores of value.
Despite the sharp gains, trading volumes remained relatively moderate due to year-end holiday conditions, suggesting that price movements were amplified by thinner liquidity.
However, market strategists said underlying demand for precious metals has remained firm, driven by both institutional and retail investors seeking portfolio protection.
The precious metals rally comes as broader financial markets remain cautious. While equity markets in parts of Asia and the United States have shown resilience, investors continue to hedge against downside risks by increasing exposure to defensive assets.
Looking ahead, analysts said the direction of precious metals prices will depend on incoming economic data, central bank guidance, and developments on the geopolitical front.