Precious metals hold near highs as investors await US inflation clues

Thursday 18 December 2025 - 10:50

By: Dakir Madiha

Precious metals hold near highs as investors await US inflation clues

Gold prices steadied close to their record peak on Thursday, while silver and platinum continued to test fresh highs as investors awaited key US inflation data and central bank decisions that could shape global monetary policy through year-end.

Spot gold hovered around 4,334 dollars an ounce, roughly 50 dollars below the record of 4,382 dollars reached in October. The metal has surged 65 percent this year, fueled by strong central bank buying and sustained demand from investors seeking protection against slowing growth and volatile bond yields.

Silver also held firm, trading near 66.48 dollars per ounce after hitting an all-time high of 66.88 dollars on Wednesday. The metal has more than doubled in value in 2025, reflecting robust industrial demand and renewed investor interest in commodities.

Platinum extended its impressive rally, advancing 2.9 percent to 1,953 dollars after touching 1,977 dollars, its highest level since 2008. The metal’s recent gains have been driven by demand from banks stockpiling supplies in the United States to mitigate tariff-related risks, and by increased buying from China’s new futures exchange.

Inflation data and central bank decisions drive sentiment

Markets are on edge ahead of November’s Consumer Price Index report, due Thursday, which is expected to show headline inflation rising to 3.1 percent from 3.0 percent in September, while core inflation is projected to remain at 3.0 percent. The figures are seen as crucial in determining the Federal Reserve’s next steps after cutting interest rates for a third consecutive time on December 10, bringing its key rate to a range of 3.50 to 3.75 percent.

Fed Governor Christopher Waller suggested the central bank could maintain its easing cycle amid signs of a cooling labor market, noting that unemployment climbed to 4.6 percent in November the highest since September 2021. Analysts say falling real yields and a softer policy outlook are offering strong support for precious metals.

Three other major central banks will set policy this week. The Bank of England is expected to trim rates to 3.75 percent, the European Central Bank may hold steady, and the Bank of Japan is widely anticipated to raise rates to 0.75 percent, continuing its gradual departure from ultra-loose policy.

Geopolitical tensions reinforce safe-haven appeal

Rising geopolitical risks have further boosted demand for precious metals. President Trump has ordered a blockade on sanctioned oil tankers entering or leaving Venezuela, escalating tensions with Caracas following recent US military operations in the region. At the same time, stalled peace efforts between Russia and Ukraine continue to weigh on global sentiment. Combined, these developments have heightened safe-haven demand as investors seek protection ahead of year-end volatility and tighter financial conditions.