Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets

Gold prices edged slightly lower in Asian trading on Friday but were still on track to post modest weekly gains, as strong safe-haven demand continued to support the precious metals market. At the same time, silver and platinum significantly outperformed gold, remaining close to record highs and marking some of their strongest weekly performances in years. The broader rally in metal prices was fueled by softer-than-expected U.S. inflation data, which strengthened expectations of further interest rate cuts by the Federal Reserve, even as the U.S. dollar showed signs of mild recovery.

Spot gold slipped 0.1% to around $4,326 per ounce, staying close to its recent record high reached in October. Gold futures for February delivery also eased slightly, trading near $4,355 per ounce. Despite Friday’s dip, gold prices were still up roughly 0.4% for the week, reflecting ongoing investor demand for traditional safe-haven assets amid economic uncertainty.

Silver and platinum, however, stole the spotlight. Spot silver climbed about 0.5% to nearly $65.84 per ounce and was up approximately 6% for the week, extending its winning streak to a fourth consecutive week. Platinum prices also advanced, rising 0.6% to around $1,937 per ounce and posting an impressive weekly gain of more than 10%. Palladium joined the rally, surging over 14% for the week as expectations of tight supply conditions added to bullish sentiment.

Investors have increasingly favored silver and platinum in recent weeks, viewing them as attractive alternatives to gold due to their lower prices and comparable stability. Concerns over potential supply shortages for both metals in the coming year have further supported prices, especially as demand for tangible, real-world assets grows amid fears of slowing economic growth in developed economies.

The precious metals rally was reinforced by weaker U.S. consumer price index data for November, which boosted confidence that the Federal Reserve may cut interest rates further. However, some analysts cautioned that the November data may have been distorted by disruptions linked to a government shutdown, suggesting that December’s inflation reading could provide clearer guidance on the Fed’s policy outlook. Meanwhile, rising uncertainty around the U.S. economy, including an unexpected increase in unemployment, has heightened stagflation concerns and strengthened safe-haven demand across the metals market.