Silver retreats from $80/ounce peak, gold softens on profit-taking

Silver retreated after touching a record peak above $80 an ounce on  Monday while gold slipped from levels close to historic highs as investors booked profits and a market perception of reduced geopolitical risks curbed safe-haven buying. 

Spot gold was down 1.7 per cent at $4,455.35 an ounce by 1321 GMT after hitting a record $4,549.71 on Friday. US gold futures for February delivery lost 1.7 per cent to $4,474.80. Spot silver shed 5.1 per cent to $75.15 an ounce, retreating from a record  high of $83.62 hit earlier in the session. As of 7 pm Indian standard time (IST), gold was trading at $4,446.75 per ounce while silver was at $74.73.

 

 

Spot platinum slid by 6.9 per cent to $2,281.15 an ounce after touching a record peak of $2,478.50 while palladium plunged 11.9 per cent to $1,694.75 an ounce. 

“This morning (gold) price decline, which follows record highs, is attributable mainly to traders taking profits ahead of the 

year-end,” said ActivTrades analyst Ricardo Evangelista. 

“Tentative optimism from the US administration regarding progress in the Ukraine peace talks also represents a mild headwind,” he added.   

US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to an agreement to end the war in Ukraine. 

Bullion has risen about 72 per cent this year, rallying on factors such as softer US monetary policy, dollar weakness, geopolitical friction and robust central bank  

purchases. Outperforming gold, silver has gained 181 per cent so far this year, driven by its designation as a US critical mineral, supply shortages and rising industrial and investor appetite.  

Markets are looking out for the release of the Fed’s December meeting minutes, due on Tuesday, for clues on the interest rate outlook. Traders are pricing in two rate cuts next year. Non-yielding assets tend to do well when interest rates are low. 

UBS lifts gold outlook, sees prices rising to $5,000/oz in 2026 

UBS on Monday raised its gold target price to $5,000 an ounce over the first three quarters of 2026, before expecting prices to moderate to $4,800/oz by end-2026, up from its earlier forecast of $4,300/oz. The bank expects gold demand to rise steadily through 2026, supported by lower real yields, persistent global economic concerns, and uncertainty around US domestic policy, particularly linked to midterm elections  and rising fiscal stress. “If political or financial risks increase, prices could climb to as much as $5,400/oz (previously $4,900/oz),” UBS said.