The precious metal became more attractive as a hedge against uncertainty as investors sought protection against potential declines in the stock market after recent record run-ups and conflicting remarks from Federal Reserve officials about monetary policy.
The Fed cut interest rates for a third consecutive time last week, though in a highly unusual move, three voting members dissented. Chairman Jerome Powell is also rapidly approaching the end of his term. President Donald Trump is likely to appoint someone who shares his desire for lower interest rates but it’s uncertain whether policymakers will deliver amid uncertainty about the condition of the labor market and the trajectory of inflation. Lower interest rates are typically considered bullish for precious metals, making them a more attractive alternate investment.
February gold futures rose 2% last week to settle at $4,328.30 an ounce on Comex after the most-active contract rallied 0.4% Friday. Bullion gained 6.5% last month after increasing 3.2% in October and surging 10% in September, the most in six months. It’s up 64% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The February contract is currently up $27.40 (+0.63%) an ounce to $4355.70 and the DG spot price is $4331.00.
March silver futures surged 5% last week to settle at $62.01 an ounce on Comex, though the most-active contract lost 4% Friday. The white metal hit a series of record highs last week on a historic squeeze in the London market. Silver increased 19% in November after rising 3.3% in October and adding 15% in September. It’s up 112% this year after rising 21% in 2024. The March contract is currently up $1.578 (+2.54%) an ounce to $63.585 and the spot price is $63.65.
Both gold and silver are heading for their best annual performances since 1979.
The next key bit of economic data will be the November U.S. jobs report from the Labor Department. It’s scheduled to come out Tuesday after being delayed for weeks because of the U.S. government shutdown this fall. The report will also include data from the October survey, the Labor Department has stated.
Powell said last week that federal data could be overestimating job creation by 60,000 jobs a month in his news conference Wednesday after Fed officials cut benchmark rates to 3.50% to 3.75% and maintained their outlook for just one interest rate cut in 2026. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
About 76% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 24% expect another 25 basis point cut.
Spot palladium gained 3.7% last week to $1,518.50 an ounce after advancing 0.7% Friday. Palladium added 0.5% in November after rising 14% in October and gaining 14% in September. Palladium is up 64% this year after dropping 17% in 2024. The current spot price is up $81.80 an ounce to $1569.50.
Spot platinum increased 6.1% last week to $1,755.30 an ounce and rallied 2.9% Friday. It climbed 4.7% in November after rising 1% in October and gaining 15% in September. Platinum is up 92% in 2025 after losing 8.4% in 2024. The spot price is currently up $50.50 an ounce to $1793.00.
