Gold prices hovered just below record territory as investors reacted to weaker-than-expected US inflation figures, reinforcing expectations for further interest-rate cuts by the Federal Reserve. At the same time, platinum continued an exceptional rally, pushing toward levels not seen in more than a decade.
Bullion traded steadily around $4,340 per ounce, recovering from earlier declines and remaining within striking distance of the all-time high set in October. The latest core US Consumer Price Index showed inflation easing in November to its slowest annual pace since early 2021, a development that strengthened market confidence in a more accommodative monetary policy outlook.
The Federal Reserve implemented its third consecutive rate reduction last week, a move that typically supports non-yielding assets such as gold. While policymakers have offered limited clarity on the timing of additional cuts in 2026, market pricing suggests a modest chance of a reduction as early as January, with expectations rising sharply by April. Falling US Treasury yields have further underpinned precious metals.
Geopolitical risks have also played a role in boosting demand. Escalating tensions surrounding Venezuela, including new US measures targeting sanctioned oil shipments and increased military activity in the region, have added to safe-haven flows. Diplomatic efforts by Mexico and Brazil to mediate have done little to ease investor caution.
According to market analysts, declining real yields combined with geopolitical uncertainty and lower year-end liquidity are restoring precious metals as key portfolio stabilizers. Gold has already gained roughly two-thirds this year, positioning it for its strongest annual performance since 1979, fueled by sustained central-bank purchases and renewed interest in gold-backed exchange-traded funds.
Platinum has been even more dramatic, advancing for a sixth straight session and more than doubling in value this year. If sustained, the move would mark its largest annual gain since records began in the late 1980s. Tightening supply conditions in the London market, alongside precautionary stockpiling in the US amid tariff concerns, have constrained availability.
Demand from China has further intensified the rally. Strong export flows and the recent launch of platinum futures trading on the Guangzhou Futures Exchange have attracted heavy participation, with open interest and trading volumes surging. Prices on the Chinese exchange have climbed well above international benchmarks, amplifying the global upswing.
Elsewhere in the precious metals complex, silver edged slightly lower, while palladium posted gains. The US dollar weakened marginally, offering additional support across the sector.
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