Silver broke through $77 for the first time on Friday (December 26th), while gold and platinum hit record highs, driven by expectations of a US Federal Reserve interest rate cut and geopolitical tensions fueling demand for safe-haven assets.

Spot silver jumped 7.5% to $77.30 an ounce, as of 1:53 PM ET (1853 GMT), after hitting an all-time high of $77.53 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US essential mineral, and strong investment inflows.

Spot gold rose 1.2% to $4,531.41 an ounce, after hitting a record high of $4,549.71 earlier. US gold futures for February delivery closed 1.1% higher at $4,552.70.

"Expectations for further Fed policy easing in 2026, a weak dollar, and rising geopolitical tensions are driving volatility in a thin market. While there is some risk of profit-taking before the end of the year, the trend remains strong," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

The market is anticipating two interest rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could appoint a dovish Fed chairman, reinforcing expectations for a more accommodative monetary stance.

The US dollar index is on track for a weekly decline, boosting the appeal of dollar-priced gold for overseas buyers.

On the geopolitical front, the US is conducting airstrikes against ISIS militants in northwest Nigeria, Trump said on Thursday.

"Silver could reach $80 by the end of the year. For gold, the next target is $4,686.61, with the possibility of reaching $5,000 in the first half of next year," Grant added.

Gold remains on track for its strongest annual gain since 1979, supported by Fed policy easing, central bank buying, ETF inflows, and the ongoing de-dollarization trend.

On the physical demand side, the gold discount in India widened to its highest level in more than six months this week as a relentless price rally pressured retail buying, while the discount in China narrowed sharply from last week's five-year high.

Elsewhere, spot platinum rose 9.8% to $2,437.72 an ounce, after earlier hitting a record high of $2,454.12, while palladium surged 14% to $1,927.81, its highest level in more than three years.

All precious metals posted weekly gains, with platinum posting its strongest weekly gain on record.

Source: Reuters.com