Back to top

Image: Bigstock

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

Read MoreHide Full Article

Key Takeaways

  • Precious metals surged on safe-haven demand and a weaker dollar, lifting GLD, SLV, PPLT, PALL.
  • Silver and platinum outpaced gold this year on industrial demand and tight supply dynamics.
  • Policy easing and geopolitical risks could keep metal ETFs supported into 2026.

Precious metals rallied to record highs ahead of Christmas. Gold edged past the $4,500-per-ounce mark for the first time on Wednesday, while silver and platinum also touched fresh all-time highs, as investors rushed into precious metals to hedge against rising geopolitical tensions, trade uncertainty, and further U.S. monetary policy easing in 2026. SPDR Gold Trust (GLD - Free Report) added 1.3% on Dec. 23, 2025 while this gold bullion exchange-traded fund (ETF) advanced 68.5% this year.

Silver, Platinum, Palladium Extend the Rally

iShares Silver Trust (SLV - Free Report) rose 3.8% on Dec. 23, 2025 (up 140.8% year-to-date), abrdn Physical Platinum Shares ETF (PPLT - Free Report) gained 8.5% on the day (up 145.9% YTD), and abrdn Physical Palladium Shares ETF (PALL - Free Report) surged 5.4% on Dec. 23, 2025 (up 102% this year).

Silver and platinum prices hit record highs (per Trading Economics), while palladium reached its highest level in three years, as quoted on tradingeconomics. The surge indicates broad-based strength across the precious metals market.

Safe-Haven Demand Drives Investor Inflows

Global economic uncertainty and policy shifts have been favoring precious metals lately, as they offer safe-haven status. The trend of de-dollarization also favors precious metals, as these metals are priced in the greenback. A weaker greenback is favorable for the metal rally. Note that Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) lost 0.3% on Dec. 23, 2025, and is off 9.2% this year.

Still-present tariff tensions are another factor causing global economic discomfort and leading to the spike in precious metals.

Lower U.S. Rates Ahead?

The Fed has enacted three rate cuts this year. With Fed Chair Jerome Powell’s term ending in May, markets see growing chances for deeper rate cuts ahead. If the Fed continues policy easing (albeit at a moderate pace), which could be the case given President Trump’s inclination for lower rates and still-contained inflation amid tariffs, the U.S. dollar may lose further strength. This scenario could prove to be a boon for metal prices.

Gold Posts Its Strongest Annual Gain in Decades

Gold has surged about 70% so far this year, marking its biggest annual gain since 1979 (per Trading Economics). Strong central-bank buying and steady ETF inflows were key to the success. GLD has amassed about $22.17 billion in assets this year (per data from etf.com).

Why Silver Tops Gold

Silver has outperformed gold, jumping about 140% year-to-date. Its gains have been supported by high industrial usage, inclusion on the U.S. critical minerals list, and strong investment demand. SLV ETF has now about $35 billion in total assets. 

Supply Constraints & Auto Market Boost Platinum and Palladium

Platinum and palladium -- key components in automotive catalytic converters -- have offered powerful rallies this year. Tight mining supply is a major cause behind the rally.  Platinum has now gained for a 10th successive session, marking its longest streak since 2017. The metal has recorded the largest annual advance since at least 1987 (per Trading Economics).

Apart from supply shortages, expectations of stronger demand have been resulting in higher palladium prices. The European Commission has proposed easing its 2035 combustion-engine ban by reducing the emissions reduction target from 100% to 90%. This would permit some non-electric vehicles to remain on sale post-2035 (as quoted on Trading Economics).

The proposed policy could help palladium demand, as gasoline and hybrid vehicles would continue to require catalytic converters which uses palladium as an input.

Published in