BENGALURU: Silver breached the $76 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 fueled safe-haven demand.

Spot silver jumped 6 per cent to $76.24 per ounce, as of 12:03 p.m. ET (17:03 GMT), after hitting an all-time high of $76.46, marking a 164pc year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.

Spot gold was up 1.2pc at $4,533.43 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery added 1.43pc to $4,566.50.

“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.

“$77/oz and then $80 in silver is within reach by year-end. For gold, the next objective is $4,686.81, with $5,000 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-dollarisation 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 9.8pc to $2,438.92 per ounce, having earlier hit a record high of $2,454.12, while palladium climbed more than 13pc to $1,910.13.

Published in Dawn, December 27th, 2025