Gold (GC=F) and silver (SI=F) have been two of the biggest winners in financial markets this year, as momentum in the precious metals trade pushed prices to all-time highs with just a handful of days left in 2025.
Gold’s year-to-date rally topped 70% on Monday, with the price of an ounce of gold hitting a record $4,450 during a year that has seen the yellow metal hit 50 all-time highs.
The price of silver has had an even stronger 2025, more than doubling since January and reaching as high as $68.50 an ounce on Monday.
Both precious metals are on track to deliver their largest annual gain since 1979.
Fueled by strong industrial demand and physical shortages tied to tariff concerns this year, the rally in precious metals has come amid investor attention spread across an array of risk assets — ranging from cryptocurrencies to the AI trade to European stocks — that have drawn headlines amid eventful years in 2025.
But gold and silver look set to be the defining trades of the year.
“In the new paradigm, gold is being viewed as a currency rather than a commodity,” Shree Kargutkar, senior portfolio manager at Sprott Asset Management, told Yahoo Finance.
“We see no reason for gold to change its vector until sound monetary policies are reintroduced by the global central banking community,” Kargutkar said.
Read more: How to invest in gold in 4 steps
In the case of gold, central bank hoarding, exchange-traded funds (ETFs) purchases, a weaker dollar, and falling interest rates have served as major tailwinds. Few of these are expected to ease in the year ahead.
President Trump is expected to soon announce his pick to replace Federal Reserve Chair Jerome Powell, whose term ends in May, raising expectations that a dovish Fed and “run-it-hot” policy could further boost prices.
Some Wall Street analysts also see more room to run as central banks continue to be “sticky” net buyers for gold. Goldman Sachs reaffirmed its “structurally bullish” outlook with a price target of $4,900 by the end of 2026, with an upside risk if underallocated private investors add to their portfolios.
UBS expects gold to reach $4,500 by June 2026, driven by lower real yields and continued dollar weakness.
The World Gold Council suggests more fiscal spending, central bank demand, and lower rates could buoy prices another 5%-15% next year.
“If economic growth slows and interest rates continue to fall, gold could see moderate gains,” Joe Cavatoni, senior market strategist at World Gold Council, told Yahoo Finance on Monday. “In a more severe downturn marked by rising global risks, gold could perform strongly.”
