AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

12/19/2025: Gold gains on data, rate view

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose 0.6% to close above $4,361 as soft US economic data and moderate inflation cemented expectations that the Fed will continue easing monetary policy in 2026. Bullion gained 1.5% for the week. Silver surged another 2.1% to finish at $66.85, near its all-time high, and notched a weekly rise of 8.2%.

Consumer confidence fell further in December to a level of 52.9, near its all-time low on the University of Michigan index, as Americans anticipate sharply higher inflation and a rising unemployment rate.

The grim outlook comes despite solid consumer spending, a relatively stable economy, and surprisingly benign inflation, given the huge jump in tariffs this year. The CPI for November, released yesterday, showed the annualized inflation rate rising to 2.7%, far less than forecasts of 3.1%. The core rate, less food and energy, rose to 2.6%.

The data fuels optimism that the Fed will continue cutting rates in 2026, although many Fed officials claim to be in no hurry after three consecutive cuts of 25 basis points this fall. Fed fund futures traders are projecting additional reductions of at least 50 basis points next year.

Lower interest rates support higher prices for gold and silver because they pressure the dollar, making the metals less expensive in other currencies. They also lower bond yields, decreasing the opportunity costs for holding non-yielding assets.

Gold has risen more than 66% this year and silver has more than doubled behind monetary easing, stubborn inflation, volatile trade policies, and geopolitical turmoil. Aggressive central bank buying has further boosted gold, while silver's gains have been supercharged by severe supply deficits. All these drivers remain in place entering 2026.

Platinum picked up 2.3% for the day and 5.6% for the week. Palladium rose 2.6% for a weekly climb of 7.2% because of supply deficits in Russia, the leading producer of PMGs.

At the New York spot close: gold gained $27.85 to $4,361.40; silver rose $1.40 to $66.85; platinum added $44.40, to $1,979.25; and palladium advanced $44.95 to $1,749 an ounce.