Precious Metals Market Update: 12/17/2025

Precious metals markets erupted higher on Wednesday, December 17, 2025, following the Federal Reserve’s decision to lower interest rates by 25 basis points. While the move was widely anticipated, the central bank’s commentary regarding a softening labor market ignited a fresh wave of buying in tangible assets. Silver and platinum were the clear outperformers, with silver notching fresh all-time highs and platinum breaking out to levels not seen since 2011.

The Federal Open Market Committee (FOMC) concluded its two-day meeting by lowering the federal funds rate to a target range of 3.50%–3.75%. This marks the third consecutive rate reduction, confirming the Fed’s pivot toward supporting economic growth. Unlike Tuesday’s consolidation, Wednesday’s session was characterized by explosive momentum in the industrial precious metals. Silver prices shattered previous resistance, surging past $65.00 per ounce to set new record highs. Platinum also joined the rally, clearing key multi-year resistance levels. Gold participated in the upside but played second fiddle to its white metal cousins, closing firmly near its daily highs.

Key Drivers: The "Dovish" Cut and Labor Concerns.

The catalyst for the rally was not just the rate cut itself, but the rationale behind it. In his post-meeting press conference, Fed Chair Jerome Powell highlighted "significant downside risks" to the U.S. labor market. He noted that recent payroll data might be overstating job growth, suggesting that the economy could be cooler than the headline numbers indicate.

This acknowledgment of economic fragility weakened the "soft landing" narrative and bolstered the case for safe-haven assets. Consequently, the U.S. Dollar struggled to find a footing, further propelling dollar-denominated commodities .

Additionally, the Fed released its updated "dot plot," or Statement of Economic Projections (SEP). The median projection now indicates that policymakers anticipate one additional rate cut in 2026. While this suggests a slower pace of easing compared to 2025, the market interpreted the Fed's commitment to protecting the labor market as a green light for inflation-hedge assets, such as gold coins.

Technical Analysis: Blue Sky Breakouts

Wednesday’s price action significantly altered the technical landscape, particularly for silver and platinum.

• Silver: The metal confirmed a decisive breakout above the $64.50 level, entering "blue sky" territory with no historical resistance overhead. Momentum indicators such as the RSI are elevated but confirming the strength of the trend. Traders will now look at the $64.50–$65.00 zone as a critical new support floor.

• Platinum: Platinum staged a massive technical breakout, clearing the psychological $1,700 barrier. This move invalidates long-standing bearish structures and opens the door for a potential run toward $1,800. Investors seeking value in the PGM (Platinum Group Metals) space may find current levels attractive for accumulating platinum bars.

• Gold: The yellow metal remains in a strong uptrend, closing above the $4,340 level. It is currently flirting with its own record highs. A daily close above $4,355 would likely trigger the next leg of the rally.

Forward-Looking Commentary

With the Fed meeting now in the rearview mirror, market attention shifts to inflation data and the bond market's reaction.

• Thursday (CPI): Tomorrow’s release of the Consumer Price Index (CPI) is the final major hurdle of the week. If inflation remains "sticky" while the Fed cuts rates to save jobs, the economy enters a classic stagflationary environment—historically the most bullish scenario for gold and silver.

• Yield Curve Control? Traders should also monitor the 10-year Treasury yield. If yields continue to fall in response to Powell’s labor market comments, it will further reduce the opportunity cost of holding non-yielding metals.

As we move toward the end of 2025, the combination of falling rates, a cooling economy, and breakout technicals suggests that the precious metals bull market retains significant momentum heading into the new year.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market data and prices are subject to change.