- India, China domestic gold prices flip to premiums
- US weekly jobless claims fall, Fed rate-cut bets still in play
- Silver, platinum notch largest yearly gains on record in 2025
Jan 2 (Reuters) - Precious metals kick-started the New Year on a strong note on Friday, resuming their rally after unprecedented gains in 2025, as geopolitical tensions and hopes of lower interest rates this year kept safe-haven demand intact.
Spot gold climbed 1.4% to $4,372.35 per ounce, as of 0724 GMT, after hitting a record high of $4,549.71 on December 26. It fell to a two-week low on Wednesday.
U.S. gold futures for February delivery gained 1% to $4,384.80/oz.
"Precious metals are commencing 2026 in much the same fashion as they performed in 2025 - which is to say with forward momentum," said Tim Waterer, chief market analyst at KCM Trade.
Bullion staged a stellar rally in 2025, ending the year with annual gains of 64%, its largest since 1979.
Interest rate cuts, bets of further easing by the U.S. Federal Reserve, geopolitical conflicts, robust demand from central banks and rising holdings in exchange-traded funds had fuelled gold's rally last year.
Gold traded at a premium in top hubs India and China for the first time in about two months this week, as a correction from all-time highs helped lift retail demand, which had been hit by an unprecedented rally in prices.
Investors currently expect at least two Fed rate cuts this year despite soft U.S. jobless claims data.
Non-yielding assets tend to do well in low-interest-rate environments.
"(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," Waterer said.
Spot silver rose 3.6% to $73.79 per ounce, after hitting an all-time high of $83.62 on Monday. Silver ended the year surging 147%, far outpacing gold in what was its best year ever on record.
The metal broke through multiple important milestones for the first time, propelled by its designation as a critical U.S. mineral, supply constraints and low inventories amid rising industrial and investment demand.
Spot platinum was up 2.5% at $2,104.10 per ounce, after rising to an all-time high of $2,478.50 on Monday. It too logged its largest yearly gain ever in 2025, having climbed 127%.
Palladium rose 2.4% to $1,641.92 per ounce, after closing the previous year up 76%, its best in 15 years.
Reporting by Ishaan Arora; Editing by Rashmi Aich and Subhranshu Sahu
Source: Reuters