Gold (GK=F) and silver (SI=F) have become two of the biggest winners in financial markets this year as pulse In precious metals trading, prices hit record highs days ahead of 2025.
On Monday, gold's year-to-date gain exceeded 70%, and on Tuesday the price of an ounce of gold briefly topped $4,500. This set another record for the year, with the yellow metal hitting 50 all-time highs.
The price of silver has risen even further in 2025, more than doubling since January, helped by strong industrial demand and physical disabilities. The metal continued to hit new all-time highs on Tuesday after topping $69 an ounce on Monday.
Both gold and silver are on track for their biggest annual gains since 1979.
Read more: Thinking about buying gold? Here's what investors should pay attention to.
The rally in precious metals comes as investor attention in 2025 spreads to virtually every risk asset, from cryptocurrencies and artificial intelligence trading to European stocks.
But gold and silver are increasingly being singled out as the deals of the year.
“The new paradigm sees gold as a currency rather than a commodity,” Shri Kargutkar, senior portfolio manager at Sprott Asset Management, told Yahoo Finance.
Strategists point to a shakeup of the traditional portfolio of 60% stocks and 40% bonds.
“Investors are getting smarter,” Phil Streible, chief market strategist at Blue Line Futures, told Yahoo Finance. “They realize they need to add strategic commodities like gold, silver and copper to their portfolios to diversify.”
Read more: How to invest in gold in 4 steps
In the case of gold central bank accumulation, purchasing exchange traded funds (ETFs), The weakening dollar and falling interest rates were major tailwinds. Some of these indicators are expected to weaken in the coming year.
President Trump is expected to soon announce his decision to replace Federal Reserve Chairman Jerome Powell, whose term ends in May, raising expectations that the dovish Fed and “hot” politics could raise prices even further.
Some Wall Street analysts also see more room for action as central banks continue to be sticky net buyers of gold. Goldman Sachs reiterated its “structurally bullish” outlook, setting a price target of $4,900 by the end of 2026, with upside risk if under-allocated retail 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 that increased fiscal spending, demand from central banks and rate cuts could support the economy. prices by another 5%-15% next year.
