Category: 3. Business

Gold was steady on Wednesday but remained on track for its strongest annual gain in over four decades, while other precious metals fell sharply as investors booked profits after a strong, record-setting rally.

Spot gold was steady at $4,345.75 per ounce as of 0404 GMT after hitting a record high of $4,549.71 on Friday.

US gold futures for February delivery lost 0.5% to $4,365.0/oz. Bullion has climbed 66% in 2025, marking its largest annual gain since 1979 when prices were driven higher by geopolitical factors, including the Iranian revolution.

Gold’s rally has been driven by interest rate cuts and bets of further easing by the US Federal Reserve, geopolitical conflicts, robust demand from central banks and rising holdings in exchange-traded funds.

However, analysts said that recent declines in precious metals were linked to technical factors alongside thin trading.

“CME announced an increase in margins on metals futures and that was a very painful adjustment for (precious metals on Monday), it seems we have very thin markets here with the holidays,” Ilya Spivak, head of global macro at Tastylive, said.

The US dollar rose to a more than one-week high, making greenback-priced bullion more expensive for other currency holders.

Minutes from the Fed’s December meeting showed policymakers agreed to cut interest rates only after a deeply nuanced debate, though traders expect two more reductions next year.

Low interest rate environments typically support non-yielding assets such as gold.

“Maybe towards the end of the first (quarter of 2026), we could see (gold) test $5,000. Certainly, it seems like the sort of catalysts animating gold, especially over the course of the past year, have become self-sustaining,” Spivak said.

Spot silver fell 4.5% to $73.06 per ounce on Wednesday after hitting an all-time high of $83.62 on Monday.

Silver has gained over 150% year-to-date, far outpacing gold, and is set for its best year ever. The metal broke multiple milestones in 2025, supported by its designation as a critical U.S. mineral, supply constraints, low inventories and rising industrial and investment demand. With the Dow, S&P 500 and Nasdaq all ticking down between a tenth and a quarter of a percent.

Spot platinum shed 6.1% to $2,065.80 per ounce after rising to a lifetime high of $2,478.50 on Monday. It is up over 120% for the year, its strongest gain ever. Palladium fell 7.1% to $1,496.75 per ounce, set to close the year up 65%, its best performance in 15 years.

The S&P/ASX200 was down 14.9 points by midday on Wednesday, or 0.17 per cent, at 8,702.2. The broader All Ordinaries fell 14.2 points, or 0.16 per cent, to 9,008.2.

Weak Wall Street lead weighs on sentiment

The local market followed a softer lead from Wall Street overnight, as global markets move through a subdued final week of 2025.

“Major US indexes dipped into negative territory overnight, with thin volumes and year-end position-squaring keeping price action limited,” Moomoo dealing manager Jimmy Tran said.

“Both US and global equities remain on track to close the year with solid gains, despite considerable economic and political uncertainty.”

Australia lags offshore markets in 2025

Australian shares have underperformed major global markets this year, rising about 6.6 per cent so far.

That compares with gains of around 17 per cent for Wall Street’s S&P 500 and almost 30 per cent for Hong Kong’s Hang Seng index and Japan’s Nikkei index.

SAN ANTONIO – Port San Antonio is among the sites where Boeing Defense Systems will work on the $2.04 billion B-52 Commercial Engine Replacement Program, the U.S. Department of Defense announced.

The San Antonio Express-News reported that Port San Antonio would be working on the nation’s oldest bomber aircraft through at least 2033 under a new contract with the Pentagon.

The contract includes system integration, modification and testing of two B-52 aircraft with new engines and associated subsystems, according to a news release from the Department of Defense.

Earlier this month, Boeing completed ground integration and initial system checks for the B-52’s new radar system at Port San Antonio, according to Boeing. This radar upgrade is part of broader modernization efforts to keep the aircraft operational “through 2050 and beyond.”

Aside from work performance taking place in San Antonio, it will also happen in Oklahoma City, Seattle and Indianapolis, with completion expected by May 31, 2033.

The program will be incrementally funded with fiscal 2026 research, development, test and evaluation funds totaling nearly $35.8 million.

Tinker Air Force Base in Oklahoma is overseeing the contract, according to the release.

KSAT has reached out to Port San Antonio for additional information.

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Singapore, 31 December 2025 – CapitaLand India Trust¹ has entered into definitive agreements for the divestment of 20.2% stakes in three data centre assets under development to CapitaLand India Data Centre Fund (CIDCF) for an estimated total purchase consideration² of INR 7.02 billion (S$99.73 million³).  

The total purchase consideration of the three data centres is based on 20.2% of the total enterprise value of INR 51.97 billion (S$738.2 million) as of 31 December 2025 which will be adjusted for liabilities, working capital, capital expenditure, and is subject to post-completion adjustments. The enterprise value, negotiated on a willing-buyer and willing-seller basis, is at a premium to the independent valuation of INR 45.70 billion (S$649 million) as at 31 December 2025.

“Gold and silver prices are experiencing a notable rise due to the interplay of several economic, investment, and geopolitical factors,” said Rania Gule from trading platform XS.com.

The main driver of the price rises of precious metals, she added, are expectations that the US Federal Reserve will cut interest rates again in 2026. Prices of gold and silver were also buoyed by gold purchases by central banks and investors buying so-called “safe haven” assets due to concerns about global tensions and economic uncertainty.

Dan Coatsworth, head of markets at investment platform AJ Bell, said soaring gold and silver prices had been driven by investors “latching onto precious metals in response to concerns over inflation” as well as volatile stock markets.

“The market backdrop looks unchanged as we move into 2026,” he added.

Mr Coatsworth said high government debt in the UK and US, as well as Donald Trump’s tariffs and nerves over a potential AI bubble, would encourage investors to “stay bullish on gold and silver”.

But he warned sharp gains for the assets in 2025 make them vulnerable to a sharp pullback next year.

He said: “If financial markets go through a difficult patch, investors looking to liquidate positions might first reach for assets that have delivered strong gains in the past year or so, or ones that are easy to sell. Gold ticks both boxes.”

Ms Gule said she expects gold to continue to rise in 2026 but “at a more stable pace compared to the record highs observed in 2025”.

Also this year, central banks around the world added hundreds of tons of gold to their reserves, according to the World Gold Council trade association.

Daniel Takieddine, co-founder of investment firm Sky Links Capital Group, points to “supply tightness and industrial demand” for helping to push up the price of silver.

China, which is the world’s second biggest producer of silver, has said it would restrict the export of the precious metal.

In October, China’s Ministry of Commerce announced new restrictions on exports of silver as well as the metals tungsten and antimony to “to step up the protection of resources and the environment”.

Responding to a post on social media about Chinese government restrictions on silver exports, Tesla boss Elon Musk said: “This is not good. Silver is needed in many industrial processes.”

Mr Takieddine also highlighted the large amounts of money that have flowed into the precious metals market through investments like exchange-traded funds (ETFs).

ETFs are baskets of investments that trade on a stock exchange like a single stock. They can be seen as a convenient way to trade precious metals as investors do not have to take possession of physical bullion.

Silver also has the potential to rise again in the coming year, said Mr Takieddine. But he warns “rallies may be followed by sharper corrections.”

Gold and silver have seen a rollercoaster end to a year in which their prices are on track to record their biggest annual gains since 1979.

The price of gold soared by more than 60% this year to hit a record high of more than $4,549 (£3,378) an ounce before falling after Christmas to stand at about $4,330 on New Year’s Eve.

At the same time, silver was trading at about $71 an ounce after hitting an all-time high of $83.62 on Monday.

This year’s gains were driven by several factors including expectations of more interest rate cuts, gold purchases by central banks and investors buying so-called “safe haven” assets due to concerns about global tensions and economic uncertainty.

“Gold and silver prices are experiencing a notable rise due to the interplay of several economic, investment, and geopolitical factors,” said Rania Gule from trading platform XS.com.

The main driver of the price rises of precious metals, she added, are expectations that the US Federal Reserve will cut interest rates again in 2026.

Also this year, central banks around the world added hundreds of tons of gold to their reserves, according to the World Gold Council trade association.

Daniel Takieddine, co-founder of investment firm Sky Links Capital Group, points to “supply tightness and industrial demand” for helping to push up the price of silver.

China, which is the world’s second biggest producer of silver, has said it would restrict the export of the precious metal.

In October, China’s Ministry of Commerce announced new restrictions on exports of silver as well as the metals tungsten and antimony to “to step up the protection of resources and the environment”.

Responding to a post on social media about Chinese government restrictions on silver exports, Tesla boss Elon Musk said: “This is not good. Silver is needed in many industrial processes.”

Mr Takieddine also highlighted the large amounts of money that have flowed into the precious metals market through investments like exchange-traded funds (ETFs).

ETFs are baskets of investments that trade on a stock exchange like a single stock. They can be seen as a convenient way to trade precious metals as investors do not have to take possession of physical bullion.

Ms Gule said she expects gold to continue to rise in 2026 but “at a more stable pace compared to the record highs observed in 2025”.

Silver also has the potential to rise again in the coming year, said Mr Takieddine. But he warns “rallies may be followed by sharper corrections.”