Precious metals cash in on record run as stocks bask in year-end glow

There was a last-minute selloff in precious metals markets on Wednesday as investors cashed in some of the year’s massive gains in gold, silver and platinum, while stocks quietly consolidated their best year since before the COVID pandemic.

- 

Most markets were on end-of-year autopilot after a roller coaster 12 months of geopolitics-related swings, extreme dollar weakness, bond market jitters and the ongoing frenzy around Al stocks. But it wasn’t the case for all.

Silver prices jerked back nearly 6% in London following their astonishing 150% surge this year. Gold, which has had its best year since the 1979 oil crisis, dipped 1%, while an 8% plunge in platinum took some of the shine off its 120% 2025 gain.

European share markets were little changed meanwhile, hovering near record highs after a stellar - albeit jarring - year that has even seen the region's banking and weapons sector stocks both handsomely outperform the mighty 'Mag 7'.

MSCI’s broadest index of world stocks was also flat after its $15 trillion rally this year and as investors digested Tuesday's Federal Reserve December meeting minutes that underscored deep divisions among policymakers about US interest rates.

The index is poised to clock a 21% increase for the year, its sharpest rise since 2019, mainly on a strong rally in chipmakers amid the boom in artificial intelligence-related stocks.

"Notwithstanding a few little shocks, the year has been terrific for investment returns,” said Kyle Rodda, senior financial analyst at Capital.com.