Gold prices climbed sharply in Asian trading on Friday, marking the first session of 2026, after finishing last year with historic gains. A softer U.S. dollar and growing expectations of lower interest rates helped revive demand for the precious metal.
Spot gold rose 1.6% to $4,378.55 per ounce, while U.S. gold futures advanced 1.2% to $4,392.40 per ounce in early trading.
The rebound followed a modest pullback from record highs in the final week of 2025, with fresh buying interest emerging as global markets reopened after year-end holidays.
The U.S. dollar edged lower, extending weakness from late last year. A weaker greenback made gold more attractive for holders of other currencies, providing near-term support for prices.
Fed policy and geopolitics fueled gold’s 2025 surge
Gold gained more than 60% in 2025, delivering its strongest annual performance in decades. The rally was largely driven by a shift in U.S. monetary policy, as the Federal Reserve implemented multiple interest rate cuts and markets priced in further easing during 2026.
Lower interest rates reduced the opportunity cost of holding non-yielding assets such as gold, encouraging investors to increase exposure to bullion.
Geopolitical risks also played a key role. Ongoing conflicts in Eastern Europe and the Middle East sustained safe-haven demand, while broader concerns over political instability and global economic growth added to gold’s appeal.
Central banks remained major buyers as well, particularly in emerging markets, as countries continued to diversify reserves and reduce dependence on the U.S. dollar.
Although gold eased slightly from its peak toward the end of last year, analysts said the fundamental drivers behind the rally remain firmly in place as 2026 begins.
Silver and platinum extend gains
Other precious metals also advanced.
Silver jumped 3% to $73.30 per ounce, building on strong gains from 2025. Prices were supported by a combination of safe-haven demand and solid industrial usage linked to renewable energy, electronics, and data centers.
Platinum rose 2.5% to $2,102.30 per ounce.
Over the course of 2025, silver surged nearly 150%, while platinum posted a gain of roughly 110%, underscoring the strength of the broader precious metals rally.
In base metals, London Metal Exchange copper futures increased 0.7% to $12,549.20 per metric ton, while U.S. copper futures added 0.6% to $5.74 per pound.
