Gold’s Remarkable Performance in 2025
The price of gold reached $3,673.95 per ounce on Tuesday, marking a 1.07% increase from the previous day’s closing price. This surge has resulted in a more than 40% rise for gold this year, outpacing the returns of major stock markets such as the S&P 500, Dow Jones, and Nasdaq, as well as Mexican exchanges BMV and BIVA.
Silver has also performed exceptionally well, with a year-to-date gain of 41.69%. In contrast, the oil price has experienced an 11% decline in 2025.
Mexican Stock Market Performance
The S&P/BMV IPC, managed by the Mexican Stock Exchange, has risen by 22.55%, while the FTSE-BIVA, overseen by the Bolsa Institucional de Valores, has gained 20.71%.
In the United States, the Nasdaq has led the major indices with a 13.30% increase in 2025, followed by the S&P 500 with a 10.73% rise and the Dow Jones with a 7.44% gain.
Reasons Behind Gold’s Surge
Alejandra Marcos, director of Analysis at Kapital Grupo Financiero, highlighted that gold’s rise is due to several factors: a decreased risk appetite, expectations of the Federal Reserve lowering interest rates, and investors’ renewed interest in safe-haven assets amid global economic and political volatility.
Felipe Mendoza, an analyst at ATFX LATAM, explained that gold’s performance is driven by the weakening US dollar (down 10% since January), anticipated interest rate cuts by the Federal Reserve, and investors’ growing preference for safe-haven assets.
Both experts agreed that geopolitical tensions further bolster gold’s role as a value safeguard.
Silver and Mining Sector Performance
Alejandra Marcos pointed out that silver’s price has also surged by over 41% this year, reflecting renewed interest in precious metals as safe-haven assets.
Felipe Mendoza noted that the mining sector has seen significant gains, with some company stocks rising over 100%. Examples include Industrias Peñoles (178.21%), China Zijin Mining (104.10%), Newmont Gold (103.98%), and Agnico Eagle Mines (95.31%).
The stock market’s performance, while moderately positive due to technology and consumer sectors, contrasts with gold and mining companies’ defensive narrative, making them standout sectors.
Central Bank Gold Accumulation
Guillermo Quechol from Kapital Grupo Financiero emphasized that central banks’ gold purchases for reserves will continue to support the rising gold prices.
According to the World Gold Council (WGC), central banks worldwide have accumulated 1,000 tonnes of gold in the past three years, compared to 400,500 tonnes held in the previous decade.
The WGC’s survey revealed that, in the past year, central banks’ gold demand primarily came from jewelry (38%), investment (35%), and central bank purchases (20%).
China and India account for around 34% of global demand, particularly in jewelry and bars.
