Record Highs for Precious Metals Amid Fed Rate Cut Expectations
Precious metals reached record highs on December 26, driven by expectations of US Federal Reserve rate cuts in 2025 and geopolitical tensions. Gold, silver, platinum, and palladium saw significant annual gains, reflecting a shift toward non-yielding assets.
Insights:
On December 26, precious metals surged to unprecedented heights, driven by market anticipation of two rate cuts by the US Federal Reserve in 2025 and ongoing geopolitical tensions. Spot gold rose to $4,505.30 per ounce, briefly touching $4,530.60, marking its strongest annual performance since 1979. US gold futures for February delivery climbed to $4,534. This rally in gold reflects a broader trend across the precious metals complex, where investors are increasingly allocating capital toward non-yielding assets.
