Gold Prices Dip After Divided Fed Rate Cut Vote; Silver Soars to Fresh All-Time High

Gold prices and silver prices reacted oppositely to the Federal Reserve's 25 basis point rate cut, with a divided vote, the prior being evolution on Thursday, while the latter continued its dramatic advance, reaching another record high and widening its giant year-to-date rise.

Spot gold, as of 12:48 GMT, was down 0.3% to $4,216.49 per ounce, while gold in U. S. futures for February delivery was up 0.5% to $4,244.40 per ounce.

The repositioning in the market that led to the gold pullback was supervised by independent market analyst Ross Norman.

“There was a lot of overpositioning ahead of the rate cut. Now that it’s happened, we’re seeing some natural selling pressure,” he explained, adding that gold’s long-term fundamentals remain strong.

Fed Cuts Rates — But Caution Looms

A split decision highly unusual came with the U. S. Federal Reserve’s latest interest rate reduction. Although they all agreed on a quarter-point cut, they also signalled a halt in further easing, alerting the market of inflation concerns that “remains somewhat elevated” and an uncertain job sector outlook.

Usually, lowering rates is a plus for gold, attracting investment to non-yielding assets, yet the Fed's cautious demeanor has kept traders nervous.

The projections made public after the meeting indicated that more than half of the Fed officials foresee just one rate cut in 2026, which is an additional source of anxiety for the market.

On the other hand, U. S. President Donald Trump suggested that the cut “could have been larger,” while he is about to announce the next Fed chair in early 2021—with economic adviser Kevin Hassett being perceived as a strong contender.

Now, investors are watching the forthcoming U. S. non-farm payrolls and unemployment numbers, which are set to be released on December 16, closely as they could affect the Fed's next steps.

Silver Hits Record High — Powered by Industrial Demand

The metallic yellow softened, silver, on the other hand, extended its explosive rally, with a 0.6% rise to $62.16 per ounce after setting an all-time high of $62.88 in the morning. The white metal has now made a jaw-dropping gain of 115% in 2025.

The demand from industry, lower supplies, and the inclusion of silver in the U. S. critical minerals list have been cited as the main reasons for the silver price boom.

“Silver’s fundamentals are incredibly bullish,” said Norman. “With its inclusion in the critical minerals list, we may even see stock building — adding more fuel to the market.”

Other Precious Metals

Platinum was priced at $1,665.99 after an increase of 0.5%

Palladium was down 0.9% to $1,463.97

As the twin signals from the Fed continue to affect the market for precious metals, dealers Web are still hesitant but are willing to hold long term uptrends, especially in the case of silver.