Precious metals have completely exploded recently, with overwhelming popularity and widespread discussion across the entire financial industry. Spot gold prices soared to a historic high of $4530.6 per ounce, silver surged to $75.14, and platinum and palladium also benefited, with annual gains of 165% and over 90%, respectively. Such levels of increase have undoubtedly made precious metals the most dazzling assets in the capital markets this year.

The market's rapid rise is naturally driven by certain factors. From a trading perspective, December has seen a continuous influx of investors into the precious metals market. With liquidity already tight at year-end, this surge in matching trades can cause significant price fluctuations—classic supply mismatch.

However, the real driving force lies at the macro level. Expectations of Federal Reserve rate cuts are growing stronger, and the dollar is weakening relative to other currencies, directly reducing the holding costs for global investors. Additionally, recent geopolitical tensions have heightened the safe-haven appeal of precious metals. The combination of multiple positive factors makes it difficult for prices not to rise.

Institutions are even more optimistic about next year. A senior analyst at OANDA explicitly stated that gold prices could potentially reach $5000 per ounce in the first half of the year, and silver may also break above $90. Platinum and palladium are also favored, partly due to tight global supply and existing tariff policies, and partly because of sustained strong industrial demand. Under this double support, declines are unlikely. Analysts at Fidelity Securities noted that U.S. stockpilers are also beginning to adopt a more cautious stance, while market sentiment continues to heat up.