Precious metals soar on US rate cut bets

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BENGALURU: Pre­cious metals began the first trading session of the New Year by building on the major gains of 2025 as geopolitical tension and expectations of US Fed rate cuts keep demand for gold high.

Spot gold was up 0.3 per cent to $4,328.49 per ounce, as of 17:24 GMT, after rising as high as $4,402.06 earlier in the session. Bullion hit a record high of $4,549.71 an ounce on Dec 26, and logged a 64pc rise in 2025.

US gold futures for February delivery were little changed at $4,339.60 an ounce.

Elsewhere, physical gold traded at a premium in India and China for the first time in about two months.

Spot silver advanced 1.8pc to $72.51 and ounce , after hitting an all-time high of $83.62 on Monday. Platinum jumped 4.5pc to $2,141.81 an ounce, after rising to an all-time high of $2,478.50, also on Monday.

Both metals outperformed gold in 2025, with silver rising over 147pc, driven by its designation as a critical US mineral, supply shortages, and low inventories when industrial and investment demand was strong. Platinum rose 127pc last year. Palladium gained 2.8pc to $1,650.29 an ounce, after closing the previous year up 76pc, its biggest gain in 15 years.

Following the end-of-year rally, all precious metals are set to post weekly losses.

Oil prices ease

Oil prices dipped on their first trading day of 2026 after registering their biggest annual loss since 2020 as investors weighed oversupply concerns against geopolitical risks, including the war in Ukraine and Venezuela exports. Brent crude futures lost 55 cents to $60.29 a barrel by 1616 GMT on Friday while US West Texas Intermediate crude was down 53 cents at $56.89.

The Trump administration’s efforts to increase pressure on Venezuelan President Nicolas Maduro continued with Wed­nesday’s imposition of sanctions on four firms.

“Oil prices are locked in this long-term trading range, and there’s a sense that the market is going to be well supplied no matter what happens,” said Phil Flynn of Price Futures Group.

Published in Dawn, January 3rd, 2026

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