NEW YORK CITY, New York: A powerful rally across precious metals gathered fresh momentum on December 26, with silver vaulting past the US$75 mark for the first time as investors piled into hard assets amid expectations of U.S. interest rate cuts and persistent geopolitical uncertainty.

Silver's surge came alongside new record highs for gold and platinum, capping an exceptional run that has made 2025 one of the strongest years on record for the sector.

Spot gold rose 0.8 percent to $4,516.50 per ounce by 0933 GMT after touching an all-time high of $4,530.60 earlier in the session. U.S. gold futures for February delivery climbed one percent to $4,547.70.

"Prospect of lower U.S. interest rates is still supporting demand for gold and silver, lifting both metals to new record highs," said Giovanni Staunovo, an analyst at UBS.

"Low liquidity is amplifying the volatility across all precious metals."

Gold is on track for its most substantial annual gain since 1979, underpinned by expectations of Federal Reserve policy easing, steady central bank purchases, exchange-traded fund inflows, and ongoing de-dollarisation trends. Markets are currently pricing in two U.S. rate cuts next year, a backdrop that typically benefits non-yielding assets such as bullion.

On the physical side, gold discounts in India widened to their highest levels in more than six months this week, while discounts in China narrowed after hitting five-year highs last week.

Silver was the standout performer. Spot prices jumped four percent to $74.82 per ounce after earlier reaching a record $75.14. The metal is now up about 158 percent year-to-date, far outpacing gold's roughly 72 percent gain, driven by persistent supply deficits, strong industrial demand, and its designation as a critical mineral in the United States.

Platinum and palladium also posted outsized gains. Spot platinum rose 7.3 percent to $2,382.35 per ounce after earlier hitting a record $2,448.25. Palladium climbed 8.3 percent to $1,823.76, extending gains after touching a three-year high in the previous session.

All four primary precious metals were on course for weekly gains, with platinum registering its most substantial weekly rise on record.

Platinum and palladium — both heavily used in automotive catalytic converters — have benefited from tight supply conditions, tariff-related uncertainty, and a rotation of investor interest away from gold. Platinum is up roughly 170 percent so far this year, while palladium has gained more than 90 percent.

"Platinum and palladium's markets are much smaller than the gold market, and if you have few investors seeing those metals as cheap, it doesn't need much to trigger large moves," Staunovo said.

He added that prices have also been supported by the European Commission's plan to ease the 2035 ban on combustion engines, which could extend long-term demand for the metals used in vehicle emissions systems.

The combination of monetary policy expectations, supply constraints, and shifting investment flows has left precious metals markets highly volatile and firmly in record territory as the year draws to a close.