Precious Metals Hit New Records
Platinum surged to $2,076.6 per pound, its strongest performance since July 2008, while palladium reached $1,805.5 per pound, a peak not witnessed since January 2023.
The US Federal Reserve has implemented 75 basis points in policy rate reductions throughout the year, creating downward pressure on borrowing costs that has amplified precious metal valuations. Market analysts anticipate two additional rate cuts in the coming year, bolstered by Trump's vocal advocacy for monetary easing—a factor particularly influential in gold's trajectory.
Persistent geopolitical instability and supply chain disruptions continue fueling the precious metals rally. The ongoing Russia-Ukraine conflict, combined with escalating US-Venezuela diplomatic friction, has intensified investor appetite for gold and silver as safe-haven assets.
Central bank purchasing activity remains a critical driver behind gold's ascent, with monetary authorities worldwide maintaining aggressive accumulation strategies.
Market momentum strengthened following developments in India, where pension regulators authorized a 1% portfolio allocation toward approved gold and silver exchange-traded funds—a policy shift opening substantial institutional demand.
Silver experienced particularly robust demand throughout the year, propelled by industrial applications spanning solar energy infrastructure, electronics manufacturing, and electric vehicle production. The US government's recent designation of silver as a critical mineral signals sustained upward demand pressure.
Meanwhile, the China Securities Regulatory Commission greenlit futures and options trading for platinum and palladium—metals essential to automotive and industrial manufacturing—providing additional price momentum alongside existing supply constraints.
Declining mine output, uncertainty surrounding US tariff policies, and portfolio diversification away from gold have collectively elevated platinum and palladium valuations. Russia's geopolitical tensions specifically impacted palladium markets.
South Africa's weakened production capacity, coupled with earlier friction between Trump and billionaire Elon Musk—who spent his formative years in South Africa—contributed to platinum's price surge.
The deteriorating relationship between the two high-profile figures sparked market speculation that Trump might curtail or eliminate electric vehicle subsidies, potentially withdrawing support for Musk's Tesla brand.
Platinum, predominantly utilized in internal combustion engines, benefited from expectations that traditional automotive sales would outpace EV adoption amid the Trump-Musk rift.
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