## Precious Metals Experience Strong Rebound, Regaining Upward Momentum After Year-End Volatility

### Year-End Price Feast and Subsequent Rapid Decline

Entering the last trading day of 2025, the precious metals market staged a rollercoaster. Gold hit a historic high on December 26, reaching $4,550 per troy ounce, while silver performed even more impressively, reaching $84 per troy ounce on the morning of December 29, setting a new record. Platinum and palladium also held their ground, soaring to $2,490 and approaching $2,000 respectively, their highest levels in three years.

One of the driving forces behind this rally was the liquidity crunch during the holiday period. Reduced trading volume often amplifies price volatility, and the sharp decline in participation in the precious metals market during the holidays created an environment conducive to "easy volatility."

But after the celebration comes the cold water. Especially for silver, which fell more than $10 on December 29, marking the largest single-day drop in over five years. This intense volatility triggered risk control mechanisms—CME's COMEX exchange immediately increased margin requirements for silver futures, directly causing a wave of forced liquidations. The Shanghai Futures Exchange had also long since raised margin thresholds in an attempt to curb excessive leverage.

### Yearly Performance Is Legendary

Despite the short-term turbulence caused by year-end volatility, the annual performance of precious metals was remarkable. Gold rose 64.6% for the year, and silver surged 148%—both the largest annual gains since 1979. Platinum increased 127%, its best annual performance since its listing in 1987, while palladium closed up 77.5%, its strongest year in 15 years.

### New Year Kickoff: Liquidity Returns, Upward Momentum Reignited

As 2026 begins, the enthusiasm in the precious metals market shows no signs of waning. As of recent trading, gold has risen to around $4,450 per troy ounce, with a single-day increase of nearly 3%; silver rebounded over 5%, trading at $76.6 per troy ounce. Both major commodities continue their upward trend.

The factors driving the New Year rally are complex. Heightened geopolitical tensions have stimulated safe-haven capital inflows. Meanwhile, the US manufacturing PMI fell to a 14-month low in December, signaling economic softening that could pressure the Federal Reserve to cut interest rates. A weak dollar environment naturally benefits dollar-denominated precious metals.

Additionally, structural changes in China's supply chain are also playing a role—reductions in physical reserves, new export regulations, and other factors have strengthened the scarcity premium of silver and other precious metals. The combined effects of low liquidity and supply concerns have created medium-term upward momentum for precious metals.