Pedro Goncalves writes:
Gold prices were mixed on Tuesday morning but rebounded from a sharp sell-off in the previous session, as thin year-end trading amplified price swings and investors looked ahead to supportive fundamentals that could drive precious metals to fresh highs in 2026.
Gold futures rose 0.8% to $4,377.40 an ounce, while spot prices retreated 2.8% to $4,358.64 at the time of writing. Bullion touched a record $4,549.71 on Friday before sliding to its lowest level since December 17 on Monday, marking its steepest daily percentage decline since October 21.
“The fact that we’ve had such a significant selloff from Monday open … it just goes to show the significant volatility probably compounded by thinner trading conditions because of the holiday season,” Kyle Rodda, senior analyst at Capital.com, said.
Gold has posted a strong performance in 2025, rising 66%, supported by expectations of interest rate cuts, bets on further US policy easing, ongoing geopolitical tensions, sustained central bank buying and growing holdings in exchange-traded funds.
“I’m expecting the longer-term rally to continue for both gold and silver, with price targets in the next six months at $5,010/oz for gold and $90.90 for silver,” said Kelvin Wong, senior market analyst at OANDA.