Precious metals opened the New Year on a strong note on Friday, extending gains from a record-breaking 2025 as safe-haven demand remained supported by geopolitical tensions and expectations of lower interest rates.
According to Reuters, spot gold rose 1.5% to US$4,378.75 per ounce as of 0553 GMT, rebounding after a two-week low earlier in the week and following a record high of US$4,549.71 on Dec 26. US gold futures for February delivery climbed 1.2% to US$4,392.20 per ounce.
“(Precious metals) seem to be making amends for the year-end selling which afflicted them earlier in the week. Year-end position-squaring pressures have eased and gold is kicking off 2026 with gains, now that fundamentals are again in focus,” said Tim Waterer, chief market analyst at KCM Trade.
Bullion staged a stellar rally in 2025, ending the year with annual gains of 64%, the largest since 1979. Interest rate cuts, expectations of further easing by the US Federal Reserve, geopolitical conflicts, strong central bank demand and rising holdings in exchange-traded funds had fuelled the rally last year.
Silver performed even more strongly, ending 2025 with a 147% gain. Spot silver jumped 3.7% to US$73.90 per ounce on Friday, following an all-time high of US$83.62 on Monday. Platinum was up 2.5% at US$2,105.48 per ounce and palladium rose 2.1% to US$1,639.12 per ounce. Both metals also recorded their largest yearly gains on record.
Investors expect at least two rate cuts by the Fed this year, supporting demand for non-yielding assets such as gold and silver. US jobless claims eased slightly last week, but labour market weakness under President Donald Trump’s second term is expected to keep rate-cut expectations intact.
In Malaysia, gold prices mirrored the global rally. As of Friday, gold traded at RM571 per gram, RM17,764 per ounce and RM571,126 per kilogram, representing daily gains of about 1.2%.
Over the past year, gold in Malaysia surged nearly 48%, continuing a multi-year bull run that has seen five-year gains surpass 125%. Silver also climbed, rising 3.3% to RM73 per gram, with a 12-month gain of 118%.
The strong start to 2026 suggests continued momentum for precious metals, supported by global economic uncertainty, low-interest-rate expectations and sustained investor appetite for safe-haven assets.
