UBS Warns of Profit-Taking as Precious Metals Rally to Record Highs

Precious metals like gold, silver, and platinum have seen an unprecedented year-end rally to record highs. UBS, however, cautions investors about significant profit-taking risks due to thin holiday liquidity and unclear immediate drivers for the surge.

• Gold surged past $4,500, with silver exceeding $70 an ounce in late 2025.
• UBS warns of short-term profit-taking risks due to rapid price acceleration.
• Thin year-end market liquidity is amplifying price volatility.
• Despite short-term caution, UBS maintains a bullish long-term precious metals outlook for 2026.
• The rally is attributed to rate cut expectations, weaker dollar, and geopolitical tensions.
• Platinum and palladium also saw significant gains of 40% and 34% respectively in December.

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