Background on Key Figures and Context
The precious metals market has experienced remarkable growth in 2025, with silver leading the charge by surging nearly 150% and gold seeing its largest annual gain in more than 45 years. This surge has been driven by a combination of factors, including interest rate cuts, expectations for further monetary easing from the U.S. Federal Reserve, geopolitical tensions, strong demand from central banks, and increased holdings in exchange-traded funds.
Silver’s Historic 150% Gain
Silver: On Wednesday, silver futures for February delivery in the U.S. dropped by 4.8% to $72.83 per ounce, following a record high of $83.62 on Monday. This year, silver has gained over 151%, far outpacing gold and marking its best year in history.
Gold’s Largest Annual Gain in Over 45 Years
Gold: Spot gold fell 0.3% to $4,331.73 per ounce on Wednesday, after dropping to its lowest level in over two weeks during the session and reaching a historic high of $4,549.71 on Friday.
Gold futures for February delivery in the U.S. were down 0.9% to $4,346.40 per ounce.
This year, gold has risen nearly 65%, its largest annual increase since 1979. Geopolitical factors, such as the Iranian Revolution, drove prices up during that time. The recent gold rally has been fueled by interest rate cuts, anticipation of further monetary easing from the U.S. Federal Reserve, geopolitical conflicts, strong demand from central banks, and increased holdings in exchange-traded funds.
Other Precious Metals Performance
- Platinum: Platinum futures fell 6.1% to $2,064.21 per ounce on Wednesday, after touching a record high of $2,478.50 on Monday. The metal has seen an annual increase of over 127%, the largest in its history.
- Palladium: Palladium rose 0.1% to $1,612.25, closing the year with a gain exceeding 78%, its best performance in 15 years.
Expert Opinions and Future Outlook
Ilya Spivak from Tastylive stated, “Perhaps by the end of the first quarter of 2026, we could see gold testing $5,000. Clearly, the catalysts that drive gold, especially over the past year, have become self-sustaining.”
Prices have retreated from their recent peaks as traders took profits following the CME’s increase in futures margin requirements for metals.
Key Questions and Answers
- Q: What has driven the surge in precious metals this year? A: The rise has been fueled by interest rate cuts, expectations for further monetary easing from the U.S. Federal Reserve, geopolitical tensions, strong demand from central banks, and increased holdings in exchange-traded funds.
- Q: How does silver’s performance in 2025 compare to gold? A: Silver has gained over 151% this year, significantly outpacing gold’s nearly 65% increase and marking its best year in history.
- Q: What is the outlook for precious metals in 2026? A: According to Ilya Spivak from Tastylive, gold could test $5,000 by the end of the first quarter of 2026, as the catalysts driving the metal have become self-sustaining.
