Precious Metals at New Peaks: Gold and Silver Are Breaking Records

Historical Records in Precious Metals

With the inauguration of U.S. President Donald Trump, significant fluctuations were observed in the commodity markets. Developments during this period have made precious metals the most profitable products for investors. Starting the new week at record levels, gold reached a new peak at $4,420.3 per ounce. Silver saw its all-time high at $69.5. Additionally, platinum climbed to $2,076.6, the highest since July 2008, while palladium reached $1,805.5, the highest since January 2023.

Growth Rates and Economic Factors

From the end of 2024, gold gained %68, silver %138, platinum %126, and palladium %95 in value. One of the main factors supporting these increases was the U.S. Federal Reserve's (Fed) decision to cut interest rates by a total of 75 basis points. Furthermore, expectations of two additional rate cuts by the Fed in 2026 increased demand for gold and silver.

Geopolitical Risks and Supply Shortages

Geopolitical risks, particularly the ongoing tension between Russia and Ukraine and the increasing tension between the U.S. and Venezuela, have directly affected precious metal prices. Continuous gold purchases by central banks have also been one of the fundamental factors behind the increases. For instance, the shift of pension funds in India towards gold and silver ETFs is an important development that has heightened demand.

Industrial Demand and Developments in Silver

On the other hand, silver is not only performing strongly in investment demand but also in industrial applications. Increased demand in the solar energy, electronics, and electric vehicle sectors supports silver prices. The U.S. adding silver to its list of “critical minerals” has strengthened expectations for future demand increases.

The Chinese Influence on Platinum and Palladium

The effects on platinum and palladium prices have largely been shaped by developments originating from China. New regulations regarding these metals and supply-side shortages in China's automotive and industrial sectors have accelerated price movements. In particular, geopolitical risks stemming from Russia and weak production data from South Africa have provided upward support for palladium prices.

Finally, experts assessing the impacts of changing interest rate policies on precious metals predict that expectations for 2026 will positively reflect on the markets. This situation is expected to lead to an increase in the prices of metals such as silver, platinum, and palladium, which have greater demand in industrial applications.