Introduction to the Metal Market Performance in 2025
In 2025, the precious metals market witnessed remarkable gains, with silver and gold prices reaching historic highs. The market saw silver surge by 150%, marking its best annual performance ever, while gold experienced its largest yearly increase in over 45 years.
Gold Performance
Spot gold was down by 0.3% at $4,331.73 per ounce on Wednesday, following a drop to its lowest level in over two weeks and after reaching a record high of $4,549.71 on Friday.
Gold futures in the United States for February delivery fell by 0.9% to $4,346.40 per ounce.
This year, spot gold has risen nearly 65%, marking its largest annual gain since 1979. Geopolitical factors, such as ongoing global instability, have contributed to the rising gold prices.
Key drivers of gold’s ascent in 2025 include interest rate cuts, expectations of further monetary easing by the US Federal Reserve, geopolitical conflicts, strong demand from central banks, and increased holdings in exchange-traded funds.
Ilya Spivak, Tastylive: “By the end of the first quarter in 2026, we might see gold testing $5,000. The catalysts propelling gold, especially over the past year, have become self-sustaining.”
Prices have retreated from their recent peaks as traders took profits following margin increases on metal futures by the Chicago Mercantile Exchange (CME).
Silver Performance
Spot silver fell by 4.8% to $72.83 per ounce, after reaching a historic high of $83.62 on Monday.
Silver has gained more than 151% in 2025, significantly outperforming gold and registering its best year ever.
Spot platinum declined by 6.1% to $2,064.21 per ounce after hitting a record high of $2,478.50 on Monday, with an annual gain exceeding 127%, the largest in its history.
Palladium, on the other hand, rose by 0.1% to $1,612.25, closing the year with a gain of over 78%, its best performance in 15 years.
Key Questions and Answers
- What are the main factors driving the rise in precious metals prices?
Geopolitical instability, interest rate cuts, expectations of further monetary easing by the US Federal Reserve, geopolitical conflicts, strong demand from central banks, and increased holdings in exchange-traded funds have all contributed to the surge in precious metals prices.
- Who is Ilya Spivak, and what are his predictions for gold prices?
Ilya Spivak is an analyst from Tastylive. He predicts that by the end of the first quarter in 2026, gold prices might test $5,000 per ounce due to self-sustaining catalysts.
- What is the significance of the CME raising margins on metal futures?
When the Chicago Mercantile Exchange (CME) increases margins on metal futures, traders take profits, causing prices to retreat from recent highs.
