Gold and Silver Prices Surge in 2025 Amid Global Economic Uncertainty
In 2025, gold prices surged over 60%, briefly surpassing $4,549 per ounce, and ended the year around $4,330 on New Year's Eve. Silver also experienced significant gains, reaching an all-time high of $83.62 per ounce earlier in the year before settling at about $71 per ounce by year-end.
These increases were driven by expectations of Federal Reserve rate cuts in 2026, increased central-bank gold purchases, and heightened demand for safe-haven assets amid ongoing global tensions and economic uncertainty. Central banks added hundreds of tons of gold to their reserves throughout 2025, according to the World Gold Council.
Silver's strength was attributed to supply tightness and robust industrial demand. China, the world's second-largest producer, imposed restrictions on silver exports alongside tungsten and antimony to protect its resources and the environment. Exchange-traded fund (ETF) inflows into precious metals also contributed to demand. Additional factors affecting the market included high debt levels in the UK and US, tariffs under Donald Trump's administration, and concerns about a potential artificial intelligence (AI) bubble.
Analysts caution that the strong rally in precious metals could lead to a pullback in 2026 if financial markets weaken, as investors might choose to sell strong-performing assets first. They expect gold to continue rising in 2026 but at a more sustainable pace, with ongoing volatility and potential for further gains dependent on macroeconomic factors.
