Precious Metals Pull Back After Record-Breaking Rally; Silver Slips from $80/Ounce Barrier
By Ishaan Arora, December 29, 2025, 7:40 AM UTC
In a dramatic yet expected correction following an impressive surge, precious metals retreated on Monday as investors booked profits amid easing geopolitical tensions. Silver, which had pierced the $80 per ounce mark earlier in the session, saw a significant pullback, while gold also eased back from near-record highs.
Silver Hits an All-Time High Before Retreating
Silver prices reached an unprecedented peak at $83.62 per ounce during trading earlier this Monday before retreating to $75.47 per ounce—a 4.6% drop from the high. The silver market has witnessed an extraordinary rally over the course of 2025, appreciating by approximately 181% for the year, far surpassing gold’s gains. This surge has been fueled by its recent designation as a critical U.S. mineral, persistent supply constraints, low inventories, and rising industrial as well as investment demand.
Gold Nears Historic Levels
Spot gold was down 1.7% at $4,455.34 per ounce as of 7:07 GMT, retreating from a record high of $4,549.71 reached last Friday. U.S. gold futures for February delivery similarly weakened, declining 1.2% to $4,500.30 per ounce. Despite the recent pullback, gold has climbed an impressive 72% year-to-date, setting multiple record price levels throughout 2025. KCM Trade Chief Market Analyst Tim Waterer commented, “A combination of profit-taking and seemingly productive talks between Trump and Zelensky regarding a potential peace deal have put gold and silver on the back foot.”
Geopolitical Developments and Market Impact
On Sunday, former U.S. President Donald Trump stated that he and Ukrainian President Volodymyr Zelenskiy were "getting a lot closer, maybe very close" to reaching an agreement to end the ongoing war in Ukraine. This optimistic development has temporarily cooled demand for precious metals, which often rally during periods of geopolitical uncertainty due to their safe-haven status.
Platinum and Palladium Also Correct Sharply
Platinum following an earlier all-time high of $2,478.50 per ounce declined by 6.2% to $2,298.45 per ounce. Meanwhile, palladium plunged 11.4% to $1,705.15 per ounce, highlighting the volatility currently permeating the precious metals space.
Market Outlook: Dovish Fed Policy and Rate Cuts Anticipated
Looking ahead, analysts remain bullish on precious metals, especially if the U.S. Federal Reserve adopts a more dovish stance. Waterer noted, "$5,000 looks to be a viable target for gold next year, provided the next Fed chairman signals rate cuts.”
The prospect of two U.S. rate cuts in 2026 is widely anticipated among traders, with market participants eagerly awaiting the Fed’s December meeting minutes for further guidance. Non-yielding assets like gold and silver generally perform well in a low-interest-rate environment, providing additional support. Waterer also added, “Rate cuts combined with ongoing industrial demand and supply shortages could potentially push silver toward the $100 level in 2026.”
Summary of Year-to-Date Performance
- Silver: +181%
- Gold: +72%
- Platinum: Surpassed record highs before today’s pullback
- Palladium: Notable decline following recent highs
As 2025 comes to a close, precious metals investors continue to weigh profit-taking pressures against robust underlying demand amid evolving geopolitical and economic conditions.
Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu, and Ronojoy Mazumdar
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