Gold prices edged lower after briefly surpassing the $4,500 per ounce milestone to set a fresh record. Platinum also retreated from its overnight all-time high, dropping over 6%.
As the year-end approaches, some traders began profit-taking following a sharp rally in precious metals markets. Despite the pullback, gold has still gained nearly 70% year-to-date, while platinum prices have more than doubled.
Technical indicators supported the selling pressure. On Wednesday, gold’s 14-day Relative Strength Index (RSI) entered overbought territory, signaling potential consolidation or a correction.
The recent gold rally was partly driven by escalating tensions between the U.S. and Venezuela, boosting its appeal as a safe-haven asset. Traders also bet on further Federal Reserve rate cuts next year after three consecutive reductions, which benefits non-yielding precious metals.
Both gold and silver are on track for their best annual performance since 1979. The surge in precious metals has been fueled by increased central bank purchases and sustained inflows into exchange-traded funds (ETFs). According to the World Gold Council, gold ETF holdings expanded every month this year except May.
ETF buying has been a major driver of the rally. SPDR Gold Trust, the world’s largest gold-backed ETF, has seen its holdings grow over 20% this year.
Earlier this year, gold’s bull run was further supported by U.S. President Trump’s aggressive trade policies and his threats to the Federal Reserve’s independence.
"The key drivers behind gold and silver’s rise are persistent physical demand and renewed sensitivity to macro risks," said John Feeney, Business Development Manager at Guardian Vaults. "We’re seeing sustained momentum rather than constraints, indicating genuine market confidence rather than pure speculative froth."
After retreating from October’s peak of $4,381 due to overheated conditions, gold quickly rebounded. The rally now appears poised to extend into next year. Goldman Sachs forecasts further gains in 2026, with a baseline target of $4,900 per ounce and upside risks.
Silver prices breached $70 per ounce for the first time this week, driven by speculative inflows and lingering supply imbalances following October’s historic short squeeze.
"Unlike past silver rallies fueled by leverage, this one is backed by physical demand, altering trading dynamics near key price levels," Feeney noted. "I don’t see this trend ending anytime soon."
Platinum briefly topped $2,300 per ounce early Wednesday—a record since Bloomberg began tracking the data in 1987—amid tight supply and elevated borrowing costs. The metal has surged roughly 140% this year, with recent gains reflecting tightening London market supplies as banks relocate platinum to the U.S. to avoid potential tariffs.
At 3:07 p.m. in New York, spot gold dipped 0.1% to $4,479.42 per ounce, while platinum fell 1.4% and palladium plunged 7%. Silver edged higher, and the Bloomberg Dollar Spot Index declined 0.1%.
