Precious metals saw a rebound on Tuesday following a sharp decline in the previous session, as the market’s focus shifted back to geopolitical and economic risks. This renewed attention reignited gold’s rally, positioning it to conclude its best year since 1979.
By 2:07 p.m. ET, spot gold had increased by 0.8% to $4,364.70 per ounce. On the prior Monday, it experienced its largest daily percentage loss since October 21, as profit-taking drove it down from Friday’s record high of $4,549.71. U.S. gold futures saw a 1% increase, settling at $4,386.30.
“We witnessed significant volatility yesterday, with strong upward action in Asian trading followed by substantial profit-taking. However, the situation has somewhat stabilized today, and the trade remains generally favorable,” commented Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Gold, regarded as a safe-haven asset, has surged by 66% in 2025, marking its most significant rise since 1979. This increase has been fueled by a combination of interest rate easing, geopolitical tensions, robust central bank purchases, and increased investments in bullion-backed ETFs.
The U.S. Federal Reserve decided to cut interest rates at its December meeting after a detailed discussion about the current risks facing the U.S. economy, as revealed by the minutes from the recent two-day session. The Fed is scheduled to meet again on January 27-28, with investors anticipating that rates will remain unchanged.
“Market skepticism persists regarding the Russia-Ukraine peace deal, and broader geopolitical risks continue to support prices,” Grant added.
On the geopolitical front, Russia accused Ukraine of attempting an attack on President Vladimir Putin’s residence, vowing retaliation, while Ukraine dismissed the claim as unfounded.
Silver climbed by 7.3% to $77.48 per ounce. After reaching an all-time high of $83.62 on Monday, silver logged its largest daily drop since August 2020. The metal has soared by 168% this year, driven by its inclusion on the U.S. critical minerals list, supply deficits, and increasing industrial and investor demand.
Platinum also rose, increasing by 5.1% to $2,216.45 per ounce. It reached a record high of $2,478.50 on Monday before experiencing its largest-ever one-day drop.
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