Santa Rally for Metal ETFs as Gold, Silver & Platinum Hit Highs

Core Insights - Precious metals, including gold, silver, and platinum, have reached record highs due to increased demand as a safe haven amid geopolitical tensions and economic uncertainty [1][4][9] - Gold surpassed $4,500 per ounce for the first time, with a year-to-date increase of approximately 70%, marking its strongest annual gain since 1979 [1][7] - Silver has outperformed gold with a year-to-date increase of about 140%, driven by high industrial usage and strong investment demand [8][9] Precious Metals Performance - Gold prices have surged, with SPDR Gold Trust (GLD) gaining 68.5% this year [1] - Silver prices rose 3.8% on December 23, 2025, with iShares Silver Trust (SLV) up 140.8% year-to-date [2] - Platinum and palladium also saw significant gains, with platinum up 145.9% year-to-date and palladium up 102% [2][10] Economic Factors Influencing Demand - Global economic uncertainty and policy shifts have increased the appeal of precious metals as safe-haven assets [4] - The trend of de-dollarization and a weaker U.S. dollar have further supported the rally in precious metals [4][6] - Ongoing tariff tensions contribute to economic discomfort, driving investors towards precious metals [5] Future Outlook - The Federal Reserve has implemented three rate cuts this year, with expectations for further easing, which could benefit metal prices [6] - Supply constraints in mining and expectations of stronger demand, particularly for palladium due to automotive applications, are expected to sustain price increases [9][10] - The European Commission's proposed easing of the 2035 combustion-engine ban may bolster palladium demand as it allows for continued use in gasoline and hybrid vehicles [11]