Precious metals are set to end the year with stellar gains Wednesday, as gold posted its biggest annual rise in 46 years, while silver and platinum ‍recorded their highest gains on record.

Spot gold edged 0.3% lower to $4,331.73 per ‍ounce by 10:15 a.m. ET, after dropping to its lowest level since December 16 earlier in the session. U.S. gold futures for February delivery ⁠lost 0.9% to $4,346.40/oz.

Bullion has surged about 65% this year, its steepest annual rise since 1979, driven by a cocktail of factors including the Federal Reserve's rate cuts, geopolitical ​flashpoints, robust central bank buying, and ETF inflows.

Non-yielding gold thrives in a low-interest-rate environment, and is considered a safe store of value.

Prices have slipped from their recent peaks as traders booked profits after CME raised ‍margins again on precious metal futures.

"The short-term is very choppy and there is some profit-taking but ⁠we think the prices will continue to push higher into 2026," said Marex analyst Edward Meir.

"For gold, there is a chance we could see $5,000/oz sometime next year and for silver, we can maybe get to $100/oz."

Silver has gained more than 151% year-to-date, its strongest year ever and far ⁠outpacing gold. Supply shortages, low inventories, rising ​industrial and investor appetite, and ⁠its recent designation as a critical mineral in the United States have fueled the rise.

Silver lost 4.8% to $72.83/oz, after hitting ‍a record high of $83.62 on Monday. Spot platinum fell 6.1% to $2,064.21/oz after rising to a lifetime high of $2,478.50 on Monday. It is ‌up more than 127% in 2025, also its strongest annual performance on record.

Palladium inched up 0.1% to $1,612.25/oz, but was up more than 78% for the year, its best performance in ⁠15 years.

"PGMs ​will probably also move up ‍with gold and silver. They tend to move with industrial metals and the auto sector, so they usually lag, but eventually catch up as funds ‍shift between markets," Meir said.

Market participants are pricing in two rate cuts in 2026, a scenario that could keep the wind at gold’s back.