Gold, Silver Gain; Rate Cut Bets Fuel Rally

This positive momentum is largely driven by growing investor expectations for Federal Reserve interest rate cuts in the coming year, following U.S. inflation data that came in softer than anticipated (2.7% year-on-year in November versus a 3.1% forecast). Comments from Chicago Fed President Austan Goolsbee further supported these prospects, with federal funds rate futures indicating an increased likelihood of a January rate trim.

Silver significantly outperformed, surging 0.8% daily and an impressive 6% weekly to an all-time peak of $66.88, marking a 128% year-to-date increase compared to gold's 65%. Platinum and Palladium also saw robust gains, with Platinum hitting a 17-year high and Palladium a nearly three-year high.

Goldman Sachs projects a substantial 14% climb for gold to $4,900 per ounce by December 2026, citing sustained central bank demand and cyclical support from anticipated Fed rate cuts.