Silver cools after record surge
PMs decline as silver snaps back Silver declined on Monday after a dramatic break above 80 dollar an ounce, while gold also pulls back from its all time high level due to profit taking and lesser demand for safe haven.
Silver soon spiked to a new record high of around $83.62 per ounce before retracing its advance, trading down toward the mid‑70s in volatile intraday dealings. Spot silver was up last about 4-5% near $75 an ounce, little changed from the previous calculation but well off the session high above 80.Analysts attributed the pullback to a combination of aggressive profit-taking and evidence that geopolitical pressures were easing following a parabolic rally through December. The increase has been supported by prospects for U.S. rate cuts in 2026, persistent supply tightness and robust industrial demand from industries including solar, EVs and electronics.
Gold eases from record highs
Gold also fell, as investors cashed in gains after a record rally powered by safe havens flows and bets on looser monetary policy. Spot gold shed about 1.5–1.7% to around 4,455 dollars/ounce, following a record peak near 4,549 dollars last week, and U.S. February futures followed suit with the fall. Even with the dip, prices continue to hover close to record highs, supported by expectations of at least two U.S. Federal Reserve rate cuts in 2020 and sustained central‑bank buying. Non‑yielding assets such as gold and silver have felt supported by lower interest rates, which diminish the opportunity cost of holding them.
Geopolitics and macro drivers
Safe‑haven demand also cooled as market participants cited “seemingly productive” discussions between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky about a potential peace framework. Tensions in eastern Ukraine had receded somewhat, hence the loss of immediate demand for protection trades against bullion and other precious metals. At the same time, broader risk sentiment has stabilized, with Asian equities gaining on signs that traders have poured $38b of rate cut bets into higher yielding havens this year a year after such aggressive tightening. This has encouraged a rotation out of defensive assets into the likes of equities and higher‑yielding plays, exacerbating pressure on gold and silver in the short term.
Platinum and Palladium’s Devastating Swings Platinum and palladium are amid devastating swings
The pullback wasn’t restricted to gold and silver, with platinum and palladium also whipsawing after hitting record highs. Spot platinum fell by more than 6% to about $2,298 an ounce after touching a record around $2,478, and palladium slumped more than 11% to about $1,705.The metals are up strongly this year in large part over supply concerns and expectations of strong demand from the auto and green‑technology industries, making them susceptible to significant reversals as sentiment shifts. Monday’s moves highlighted how crammed the market is on the precious‑metals complex.
Outlook: path to $100 silver?
But as suddenly as the pullback had come, some analysts now argue that structurally it still favors higher silver movements over the medium term. If these trends continue the combination of rate‑cut expectations, strong industrial demand and persistent supply strains could leave silver “primed for a run towards 100 dollars in 2026”, according to KCM Trade’s chief market analyst Tim Waterer. Yet the speed of the recent sell-off, China’s attempts to rein in speculative excess and a potential for further corrections make volatility expected to increase. Traders are now turning to this week’s U.S. economic data and minutes of the Federal Reserve’s December meeting for new indications on the timing and magnitude of policy easing that would set up carrying trade in precious metals.
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