Gold Performance
Spot gold rose 1.1% to $4,378.29 per ounce as of 0541 GMT, bouncing back from Monday’s decline to its lowest level since December 17. The metal had hit a record high of $4,549.71 per ounce on Friday. Meanwhile, U.S. gold futures for February delivery advanced 1.1% to $4,392.0/oz.
Kyle Rodda, senior analyst at Capital.com, attributed the swings to thin holiday trading. “The significant selloff from Monday open… just shows the volatility, likely compounded by thinner trading conditions because of the holiday season,” he said.
After Monday’s drop, gold and silver both retreated from ‘overbought’ territory on the relative strength index (RSI). Bullion has seen a remarkable 66% rise in 2025, supported by expectations of U.S. interest rate cuts, bets on further policy easing, geopolitical tensions, strong central bank demand, and rising holdings in exchange-traded funds.
Silver Shines Despite Volatility
Spot silver surged 3.7% to $74.85 per ounce after hitting an all-time high of $83.62 in the previous session. Monday marked silver’s largest one-day loss since August 11, 2020. Year-to-date, the metal has soared 154%, far outpacing gold, driven by its classification on the U.S. critical minerals list, low inventories, and rising industrial and investment demand.
Kelvin Wong, senior market analyst at OANDA, predicts the rally will continue: “Price targets in the next six months are $5,010/oz for gold and $90.90 for silver.”
Platinum and Palladium Movements
Spot platinum rose 3.1% to $2,174.91 per ounce, rebounding after its record-setting one-day drop on Monday when it touched $2,478.50. Palladium fell slightly, losing 0.2% to $1,614.0 per ounce, following a 16% decline the previous day.
Market watchers anticipate that precious metals will remain volatile in the short term, but the broader trend is expected to stay bullish, fueled by low interest rates, ongoing industrial demand, and geopolitical uncertainties.