On December 24, global precious metals markets witnessed a collective rally.
London spot gold prices breached $4,500 per ounce intraday, setting a historic record. New York silver futures and London spot silver both surpassed the $72-per-ounce mark, with year-to-date gains far exceeding gold's performance. Spot platinum broke above $2,300 per ounce for the first time ever, surging over 150% this year—its largest annual gain since records began in 1987. London copper prices hit an all-time high of $12,159.50 per ton.
While each metal’s rise stems from distinct drivers, analysts note this synchronized and unexpectedly strong rally reflects multiple factors: expectations of monetary easing, geopolitical instability, and structural supply-demand imbalances.
**Gold’s Rally May Continue** Spot gold extended gains on December 24, peaking at $4,511.93/oz before settling near $4,509.73—another record high. Year-to-date, gold has climbed approximately $1,880/oz, with CNY-denominated prices up over 64%.
Dongfang Jincheng’s report attributes gold’s surge to weakening U.S. labor market data in November reinforcing expectations for monetary easing. Despite elevated core inflation, its gradual slowdown and rising unemployment beyond full-employment estimates support Fed rate-cut bets.
Central bank purchases have underpinned this bull market, World Gold Council data shows. Gold ETF inflows also remain robust, with global holdings rising monthly except May. SPDR Gold Trust, the largest precious metals ETF, saw holdings grow over 20% this year.
Muthoot Fincorp’s chief economist warns retail-driven ETF inflows—less sticky than institutional money—could sustain high volatility. Goldman Sachs projects gold reaching $4,900/oz by 2026 under baseline scenarios.
**Silver Outshines Gold** Since December, silver has stormed past $60 and $70/oz, with London spot at $72.255 (up 150% YTD) and COMEX at $71.895 (up 130%). Unlike gold’s haven appeal, silver benefits from dual investment-industrial demand.
Global silver ETF holdings keep rising, while festive demand in India (e.g., Diwali) strained London’s supplies. Industrially, silver’s use in electronics, solar panels, and medical devices has driven five consecutive years of structural deficits per the Silver Institute. Accelerated green energy transitions may further tighten this market.
**Platinum: The Star Performer** Platinum emerged as this year’s standout, jumping above $2,300/oz on December 24—a record high after 10 straight days of gains (longest streak since 2017). Its 150% YTD surge marks the best annual performance since Bloomberg’s 1987 records.
Hydrogen energy adoption bolsters platinum’s role as a key catalyst, creating "green premiums" beyond traditional precious metal frameworks, notes WPIC’s Asia-Pacific head. Supply disruptions in South Africa and trade risks (e.g., potential U.S. tariffs under Section 232) exacerbate shortages, with over 600k oz stockpiled in U.S. warehouses—well above normal levels.
**Copper’s Supply Squeeze** LME three-month copper topped $12,000/ton for the first time, fueled by supply chain disruptions, green energy demand, and a weaker dollar.
Widespread use in power, construction, and EVs ensures long-term demand, but mine outages—especially in key producing regions—and pre-tariff stockpiling (driven by potential U.S. trade policies) have depleted inventories elsewhere. Breaking $12,000 resistance may open further upside, though high prices risk demand destruction and substitution.
