Post by : Saif Rahman

The precious metals market witnessed a significant spike on Friday, with silver exceeding the $75 threshold for the first time, while both gold and platinum achieved unprecedented highs. Strong demand from investors, anticipation of lower U.S. interest rates, and increasing geopolitical tensions have caused a dramatic rise in major precious metals.

Silver experienced a nearly 4% surge, hitting a peak of $75.14 per ounce before finishing marginally lower. This notable achievement indicates rising interest among investors and industries reliant on silver. Analysts attribute silver's bullish momentum to supply constraints and its escalating importance in sectors like clean energy and electronics.

Gold's rally persisted, with spot gold reaching upwards of $4,500 per ounce after a brief excursion to a record peak earlier in the day. U.S. gold futures mirrored this trend, reflecting robust buying activity. The increase in gold prices is largely fueled by expectations that the U.S. Federal Reserve will further cut interest rates, enhancing gold's appeal as it does not yield interest.

Market analysts point to speculation as a key factor driving prices higher, particularly during the year-end when trading volumes tend to be lower. A weaker U.S. dollar has further aided the ascent of precious metals, making them less expensive for international buyers.

Geopolitical factors have also bolstered the rally. Ongoing global conflict and uncertainty encourage investment in safe-haven assets such as gold and silver. Investors often flock to these metals during turbulent times to safeguard their wealth.

Silver has emerged as a standout performer this year, boasting an impressive 158% increase thus far, eclipsing gold’s nearly 72% rise. Strong industrial demand, particularly from the renewable energy sector, alongside its designation as a critical mineral in the U.S., has further propelled silver prices.

Platinum and palladium, frequently referred to as sister metals, also experienced notable gains. Platinum soared over 9% in just one day to mark a new record high, while palladium also saw significant pricing increases. Both metals are essential in vehicle emission control systems, and their prices have surged due to limited supply and strong industrial demand.

This year, platinum has jumped approximately 170%, reflecting one of its best annual performances ever. Palladium has also risen more than 90% within the same timeframe. Analysts suggest some investors are reallocating investments from gold to platinum, adding extra upward pressure on its prices.

Looking forward, analysts maintain a positive outlook. Some predict gold could approach $5,000 per ounce in the first half of 2026, while silver might reach $90 if current trajectories persist. With low interest rates and ongoing global uncertainties, precious metals are expected to maintain their allure for investors.

The strong uptick in gold, silver, platinum, and palladium showcases a significant shift in market sentiment. Amidst high economic and political risks, precious metals continue to stand out as a favored option for investors and various industries worldwide.

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