BY COMFORT OGBONNA
Precious metals began the New Year on a strong footing on Friday, extending the powerful rally seen in 2025 as persistent geopolitical tensions and growing expectations of lower interest rates continued to underpin safe-haven demand. After delivering unprecedented gains last year, investors returned to the sector with renewed confidence as year-end selling pressures faded and market focus shifted back to supportive fundamentals.
Spot gold climbed 1.5% to $4,378.75 per ounce by 0553 GMT, rebounding after briefly slipping to a two-week low earlier in the week. The metal had surged to a record high of $4,549.71 on December 26, highlighting the strength of the broader uptrend. U.S. gold futures for February delivery also moved higher, gaining 1.2% to $4,392.20 an ounce, as traders positioned for continued momentum in the months ahead.
Analysts said the renewed advance reflected easing year-end position adjustments that had temporarily weighed on prices. With those pressures now largely behind the market, gold has started 2026 with fresh gains as investors refocus on macroeconomic drivers. Bullion capped a stellar 2025 with an annual gain of 64%, its strongest performance since 1979, fueled by a combination of interest rate cuts, expectations of further easing by the U.S. Federal Reserve, ongoing geopolitical conflicts, strong central bank buying, and rising holdings in exchange-traded funds.
Recent U.S. labor market data showed Americans filed the fewest new jobless claims in a month last week, but the figures did little to alter expectations that economic softness persists under President Donald Trump’s second term. While claims have eased from recent highs, signs of a fragile labor market have reinforced investor conviction that the Fed will move ahead with multiple rate cuts this year. Market participants currently anticipate at least two reductions in borrowing costs in 2026, an environment that typically benefits non-yielding assets such as gold.
Silver outperformed once again, underscoring the breadth of strength across the precious metals complex. Spot silver surged 3.7% to $73.90 per ounce, rebounding after touching an all-time high of $83.62 earlier in the week. The metal ended 2025 with a remarkable gain of 147%, far eclipsing gold and marking the best annual performance in its history. Its rally has been driven by a confluence of factors, including its designation as a critical mineral in the United States, persistent supply constraints, low inventories, and rising industrial and investment demand.
Platinum and palladium also advanced solidly at the start of the year. Spot platinum rose 2.5% to $2,105.48 per ounce, having reached a record peak of $2,478.50 earlier in the week. The metal recorded its largest annual gain on record in 2025, climbing 127% amid tightening supply and improving demand prospects. Palladium added 2.1% to trade at $1,639.12 per ounce, building on a 76% rise last year, its strongest performance in 15 years.
Together, the strong opening to 2026 suggests precious metals are poised to carry forward the momentum that defined 2025, with investors continuing to seek protection against economic uncertainty and positioning for a lower interest rate environment that favors hard assets.
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