After US President Donald Trump took office this year, there were strong fluctuations in the raw materials market.
Precious metals were one of the products that gave investors the most joy in the raw materials market this year.
While precious metals focused on records and historic highs in the new week, prices on an ounce basis tested the highest levels for gold at $4,000, $420.3, silver at a record $69.5, platinum at $2,000, $76.6 since July 2008 and palladium at $1,805.5 since January 2023.
Since the end of 2024, there has been an increase of over 68 percent for gold, over 138 percent for silver, over 126 percent for platinum and over 95 percent for palladium.
Factors that had a positive impact on precious metals also included the US Federal Reserve (Fed) beginning to cut interest rates, cutting rates by a total of 75 basis points this year.
While the Fed is forecast to make two rate cuts in 2026, US President Donald Trump's aggressive advocacy of rate cuts is also having a positive impact on gold and silver.
Additionally, ongoing geopolitical risks and supply issues supported the rise in precious metals. As tensions between Russia and Ukraine continue, escalating tensions between the US and Venezuela have recently impacted gold and silver price movements.
The continued purchases by central banks played an important role in the rise in gold prices.
The Indian Pension Regulatory Commission's decision to invest 1 percent of its funds in approved gold and silver ETFs has also increased the demand for gold and silver.
On the other hand, silver is also in high demand in the industrial sector. Industrial demand for silver remains strong, with demand coming particularly from the solar energy, electronics and electric vehicle sectors.
The US decision to add it to the list of “critical minerals” also reinforced forecasts that demand for silver would rise.
Chinese demand for platinum and palladium was effective
The China Securities Regulatory Commission's approval of the registration of platinum and palladium futures and options used in the automotive and industrial sectors had an impact on the price movements of these two products.
On the other hand, platinum and palladium prices rose sharply this year due to supply constraints. The decline in mining supply, uncertainty over tariffs and the partial return of investors to these metals contributed to the rise of platinum and palladium.
Geopolitical risks emanating from Russia also had a positive impact on palladium prices.
While weak production from South Africa also led to rising prices, another point that stood out for platinum this year was the verbal tension between US President Trump and Elon Musk.
Given this tension, expectations are rising that Trump will reduce or eliminate incentives for electric vehicles, while the fact that platinum is one of the products most commonly used in carbon-powered cars, i.e. non-electric cars equipped with emissions, increased expectations that demand for the product would increase.
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