Gold rebounds, heads for strongest annual gain in over four decades
Gold prices rebounded sharply on Tuesday after a steep selloff in the previous session, as investors refocused on the global risks and macroeconomic conditions that have driven bullion to its strongest annual performance in more than 40 years. Spot gold rose 1.3% to $4,387.29 per ounce, recovering from its biggest one-day percentage fall in over two months. The earlier decline followed profit-taking after gold hit a record high of $4,549.71 last week.
Analysts said the broader rally remains intact, supported by a weaker US dollar, geopolitical tensions and expectations of lower interest rates. Gold has gained around 66% so far in 2025, marking its best yearly rise since 1979. Market participants are closely watching the US Federal Reserve’s December meeting minutes, due later in the day, with traders currently pricing in two rate cuts next year—an environment that typically benefits non-yielding assets like gold.
Other precious metals also recovered after recent volatility. Silver jumped 3.5% to $74.78 per ounce, following a sharp correction from its all-time high of $83.62 earlier this week, while platinum climbed 3.3% to $2,177.55 after recording its biggest-ever one-day drop on Monday. Despite recent swings, both metals remain sharply higher for the year, reflecting strong investor demand, supply constraints and heightened uncertainty across global markets.
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