After reviewing the monthly price movements of precious metals after the announcement of the capturing Venezuelan President Nicolas Maduro in an audacious raid over the weekend, I find that the lack of excitement among the precious metals bulls could trigger selling spree soon while palladium has the potential to exceed expectations despite surging geopolitical concerns tariff concerns shifting focus on pollution reduction extends the possibilities of value buying to elevate further.
Undoubtedly, emerged as a standout asset in 2025, supported by the Federal Reserve’s monetary easing. The U.S. central bank cut interest rates three times during the year, lowering the opportunity cost of holding non-yielding assets and boosting the appeal of gold. Markets are also pricing in further rate reductions in 2026, reinforcing bullish sentiment.
Central bank purchases provided another key pillar of support, with several emerging market nations continuing to add gold to their reserves as part of diversification strategies away from the U.S. dollar.
At the same time, persistent geopolitical tensions, including conflicts in Eastern Europe and the Middle East, underpinned gold’s safe-haven demand throughout the year.
Other precious metals posted even more dramatic gains. prices surged nearly 150% in 2025, benefiting from both its role as a monetary metal and a sharp rise in industrial demand.
Strong consumption from the solar energy sector, electric vehicles, electronics, and data centres tightened supplies, while speculative buying amplified price gains in a relatively small market.
also recorded a stellar year, rising more than 110% as supply constraints and improving demand drove prices higher. Analysts said limited mine output and years of underinvestment left the platinum market vulnerable to sharp price moves when demand improved.
Despite easing slightly from recent highs, precious metals broadly outperformed most asset classes in 2025. Exchange-traded fund inflows and strong retail investment further reinforced the rally, especially during periods of heightened market stress.
Though U.S. Futures declined 1.9% to $5.67 a pound, Platinum prices are on track for their strongest monthly rally in nearly four decades in December, fuelled by the European Union’s U-turn on its 2035 combustion-engine ban, a tight supply backdrop and rising investment demand for precious metals.
Undoubtedly, platinum and palladium, both used in auto catalysts that reduce car exhaust emissions, have surged this year as U.S. tariff uncertainty and a rally in gold and silver helped offset long-term headwinds from the rise of electric vehicles globally.
I find that the European Union’s plan unveiled in December 2025 is a steroid jab for PGMs, prolonging their use in catalytic converters, and not indefinite extension, but the European Union will require ongoing tighter emission levels, which, by extension, will require higher PGM loadings.
Platinum, also used in other industries such as jewellery, is up 33% so far in December, its biggest jump since 1986, according to LSEG data.
After hitting a record high of $2,478.50 per ounce on Monday, the metal is heading for its biggest yearly growth on record of 146%. Its sister metals, palladium and rhodium, are up 80% and 95% respectively so far in 2025.
Both platinum and palladium also benefited from defensive stock-building and tighter supply in the regional physical markets due to outflows to the U.S. as Washington included the metals on the U.S. critical minerals list, and at the same time, the market expects more clarity on U.S. tariffs in January 2026.
The start of PGMs futures trading in China a month ago gave another boost, attracting heavy speculative flows and prompting the Guangzhou Futures Exchange to adjust price limits.
These contracts are the first domestic price-hedging mechanism for the PGMs in the world’s second-largest economy, which is also the top PGM consumer, relying heavily on imports.
Undoubtedly, if Chinese spot import buying remains elevated, the major test for platinum group metals will likely come after there is clarity on U.S. tariffs.
Finally, I conclude that last week’s move by precious metal futures signals a further downside still intact, as the technical formations in weekly and monthly charts indicate sliding is likely to continue in gold and silver in the upcoming weeks, which could extend the selling pressure in platinum and palladium too. But both have limited downside from the current levels, and are near their significant support levels in the monthly charts.
Disclaimer: Readers are advised to take any position in the platinum and palladium at their own risk, as this analysis is based only on observations.
