Precious Metals Prices

Precious metal prices decreased 0.8% month on month in December, following November’s 1.8% fall.

Precious metals prices dipped slightly from November’s average in December, dented by the Fed’s announcement that the Bank would ease its stance by less than previously expected in 2025. The latter also boosted the U.S. dollar, which dragged on investment demand by making precious metals more expensive for holders of other currencies. That said, elevated geopolitical tensions and the Fed’s interest rate cut early in the month stemmed the decline in prices. Looking at individual metals, weaker global vehicle demand exerted additional downward pressure on platinum and palladium. More positively, the Central Bank of China resumed gold purchases, driving gold prices to hold largely stable overall in December.