After a rapid surge last week, hitting record highs one after another, the precious metals market finally saw a significant correction today (29th). Affected by a combination of factors, the prices of gold, silver, platinum and palladium all plummeted simultaneously, and the market atmosphere quickly turned from the previous excitement to caution, forming a rare "sharp drop at high levels" at the end of the year.
Precious metals market suffers setback
According to the latest data from TradingView, spot gold prices have fallen sharply from their all-time high of nearly $4,500 per ounce, briefly dipping to around $4,332.53, a single-day drop of approximately 4.39%. However, despite this sharp short-term correction, gold is still projected to rise by approximately 65% to 72% for the entire year of 2025, marking its best annual performance since 1979.
Silver's correction was even more dramatic. After surging to a record high of $83.62 to $84 per ounce, prices plummeted, falling to a low of approximately $71.90 to $73.71, a single-day drop of 7.9% to 9.11%. However, silver's full-year 2025 gains are still projected to be between 150% and 181%, significantly outperforming gold.
Other precious metals were not spared either. Platinum fell from a high of about $2,478 to a range of $2,094 to $2,157, a drop of about 12% in a single day; palladium retreated by about $328, with prices falling to around $1,594, and the entire precious metals sector was under pressure.
Why did such a sharp pullback occur?
Market analysts generally believe that this sharp drop was mainly due to the amplification of high-level corrections in a low-liquidity environment. First, precious metals accumulated huge gains in the second half of 2025, with prices rapidly deviating from the average. At the end of the year, this triggered a large number of investors to take profits, resulting in concentrated selling pressure.
Secondly, the low trading volume and thin liquidity at the end of the year make the impact of selling pressure on prices more severe. Analysts point out that in the holiday atmosphere, any concentrated sell orders can amplify price volatility.
In addition, some market participants also mentioned that the temporary cooling of geopolitical risk perception weakened the immediate support for safe-haven buying, becoming a contributing factor to the price decline.
Analysts: Correction does not change the medium-to-long-term bullish structure
Despite short-term volatility, many analysts remain bullish on the outlook for precious metals in 2026.
Kitco Metals analyst Jim Wyckoff believes that from a technical perspective, the current situation is merely a mild profit-taking phase, and the main trend remains bullish; the supply constraints on silver have not changed. JP Morgan, on the other hand, expects central bank demand for gold to remain high in 2026, which will help support prices.
Goldman Sachs went even further, raising its price target for gold to $4,900 per ounce by December 2026, believing that upside risks still outweigh downside risks.
