Precious Metals See Sharp Price Swings Amid Interest Rate Uncertainty

Precious metals like gold, silver, platinum, and palladium have seen sharp price swings in 2026 due to shifting interest rate expectations and geopolitical uncertainty.

Analysts say each metal has different investment characteristics and varies depending on market conditions. Gold prices were volatile, weighed down at times by inflation concerns and expectations of a more hawkish Federal Reserve rate path.

The precious metal hit a record US$5,589.38 an ounce in January but retreated sharply and slipped below US$4,000 in July. It has since seen a revival, touching US$4,400 on August 12 after a weaker-than-expected US jobs report reduced expectations of a Federal Reserve rate hike in September.

William Adams, director of market insights for metals at Fastmarkets, expects gold and silver prices to rise again due to longer-term trends including a shift away from globalisation, de-dollarisation, growing government debt in Western economies, and persistent geopolitical risks.