Gold and silver retreat following record-breaking rally
Shafaq News
Precious metals pulled back on Monday, with silver trading near $80 per ounce after hitting a record high earlier in the day, and gold easing from near-record levels amid profit-taking and easing safe-haven demand.
Spot gold was down 0.4% at $4,512.30 per ounce as of 0426 GMT, after hitting a record high of $4,549.71 on Friday. U.S. gold futures for February delivery fell 0.4% to $4,535.10 per ounce.
Spot silver rose 0.7% to $79.68 per ounce, after retreating from an all-time high of $83.62 reached earlier in the session.
"A combination of profit-taking and seemingly productive talks between Trump and Zelenskyy regarding a potential peace deal have put gold and silver on the back foot," said KCM Trade Chief Market Analyst Tim Waterer.
U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskyy were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine.
Silver has surged 181% year-to-date, outshining gold, driven by its designation as a critical U.S. mineral, supply constraints, and low inventories amid rising industrial and investment demand.
Bullion has also staged a stellar rally in 2025, climbing 72% so far and breaking multiple record highs. Gold has benefited from a combination of factors, including bets on further U.S. rate cuts, geopolitical tensions, strong demand from central banks, and rising holdings in exchange-traded funds.
Waterer said $5,000 looked to be a viable target for gold next year, provided the next Federal Reserve chairman adopts a more dovish approach to monetary policy.
"Rate cuts and a continuation of robust industrial appetite paired with supply shortages could have silver primed for a run towards $100 in 2026," he added.
Traders still expect two U.S. rate cuts next year as they await the release of the Fed's December meeting minutes for further policy cues. Non-yielding assets tend to perform well in a low-interest-rate environment.
(Reuters)
Only the headline is edited by Shafaq News Agency.
