Gold rebounds, poised to cap off best year in over four decades

Spot gold climbed 0.8% to US$4,364.70 an ounce by 2.07pm ET (1907 GMT), after logging its biggest one-day percentage drop since October 21.

The retreat on Monday followed profit-taking that pulled prices off Friday’s record peak of US$4,549.71.

US gold futures settled 1% higher at US$4,386.30.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said Monday’s price action was marked by “extreme” swings, strong buying during Asian trading followed by heavy profit-taking, before conditions steadied on Tuesday, leaving the broader setup supportive.

Gold, often viewed as a safe-haven, is up 66% in 2025, fuelled by easing interest-rate expectations, flashpoints in global politics, strong central bank demand and inflows into bullion-backed ETFs.

US Federal Reserve minutes from its latest two-day meeting showed officials agreed to cut rates in December only after a detailed debate over risks to the economy.

The Fed meets next on January 27-28, and markets currently expect rates to be left unchanged.

Grant added that persistent doubts about a Russia-Ukraine peace deal, alongside elevated measures of broader geopolitical risk, continued to underpin prices.

Russia accused Ukraine of trying to attack President Vladimir Putin’s residence and threatened retaliation, a claim Ukraine dismissed as baseless.

Reuters

Silver surged 7.3% to US$77.48 an ounce, rebounding after hitting an all-time high of US$83.62 on Monday before suffering its biggest daily drop since August 2020.

Silver has jumped 168% this year, supported by its addition to the US critical minerals list, supply shortfalls, and rising industrial and investor demand.

Platinum rose 5.1% to US$2,216.45 an ounce after touching a record US$2,478.50 on Monday, then posting its biggest-ever one-day fall.

Palladium gained 1.6% to US$1,639.08, after sliding about 16% in the prior session.