• Gold, silver, and platinum ended 2025 at record highs, supported by global tensions, a weaker dollar, and Fed rate cuts.
• Strong central bank buying, ETF inflows, and supply constraints fueled sharp gains across precious metals markets.
• Investors are pricing further US rate cuts in 2026, keeping demand for safe-haven and industrial metals elevated.

Gold & Silver

Gold, silver, and platinum surged to unprecedented levels in late December, capping a strong year for precious metals. The rally was driven by rising global tensions, expectations of looser US monetary policy, and a softer dollar.

Gold extended its historic run, posting one of its strongest annual performances in decades. Spot prices rose to around USD 4,533 per ounce, after briefly trading above USD 4,545. The metal gained roughly 70% this year, marking its best performance since 1979.

Amid current global uncertainties, the view of gold as a safe investment has increased its appeal and demand. Additionally, central banks continue to purchase reserves, reinforcing long-term demand. Moreover, momentum continues to build with investors buying gold through Exchange-Traded Funds (ETFs), like the SPDR Gold Trust.

The rally was further supported by three US Federal Reserve rate cuts in 2025. These lower rates reduce the opportunity cost of holding non-interest-bearing assets like gold. This makes gold more attractive, also pushing its price higher.

Markets are now pricing additional rate cuts in 2026. Analysts predict that gold could reach USD 4,686 soon and reach USD 5,000 in early 2026. This is driven by expectations of trade policy shifts over increasing global debt levels.

Silver outperformed gold by a wide margin. Its prices jumped more than 10% in the latest session, climbing above USD 79 per ounce for the first time. Moreover, the precious metal is up more than 170% this year, driven by supply tightness and speculative demand.

However, physical constraints remain a concern. Much of the available silver supply is tied up in New York, while inventories in London have tightened. Analysts predict that the precious metal could hit USD 80 by the end of 2025. This is driven by silver’s growing role in renewable energy and electronics.

Platinum 

Platinum also recorded strong gains. Its futures climbed nearly 9% to around USD 2,459 per ounce, hitting record levels. This marks a return of more than 170% this year, supported by persistent global supply deficits.

The global supply deficit is due to production challenges in South Africa, a key supplier. Furthermore, demand from automotive catalysts and jewelry continues to outpace supply, sustaining upward pressure on prices.

In addition, Palladium joined the rally, rising more than 12% to its highest level in over three years. This is driven by strong industrial demand and broader momentum across precious metals supported the move.