The rally in precious metals continues, with silver, platinum and palladium touching fresh record highs before retreating.
Gold futures retreated 1% to $4,505.20 an ounce, while spot gold lost 1.3% to $4,475.91 at the time of writing, remaining on course for its strongest annual performance since 1979, up more than 70% this year.
Silver (SI=F) surged above $80 an ounce for the first time on Monday before pulling back 2.5% to around $75 amid profit-taking. Prices jump from $56 at the start of December and just $29 at the beginning of 2025. The sharp rise draws warnings from Elon Musk that high silver prices could hurt manufacturers.
Charu Chanana, chief investment strategist at Saxo Bank, said precious metals are buoyed by expectations of rate cuts, along with demand for hedges against geopolitical and fiscal uncertainty. She noted that supply concerns add to the momentum, but warns that the late-year, near-vertical surge, particularly in silver, raises the risk of increased volatility.
Victoria Scholar, head of investment at Interactive Investor, said: “Gold is under pressure as investors look to lock in profits before year-end after a very strong run. Potential progress between Trump and Ukrainian president Zelenskyy have also dampened demand for precious metals. Silver has had a wild ride today, breaking above $80 earlier to hit a record high before pulling back.
“Silver’s gains have propelled Fresnillo (FRES.L) shares to the top of the FTSE 100 (^FTSE) this morning. The silver producer gained as much over 4%, hitting a new high.”