As 2025 draws to a close, gold is poised for its strongest annual gain in nearly half a century, climbing approximately 66% year-to-date. Spot gold traded steady at around $4,345 per ounce on December 31, after reaching a record high of $4,549 earlier. This remarkable rally, the best since 1979’s geopolitical turmoil, has been fueled by US Federal Reserve interest rate cuts, expectations of further easing, robust central bank purchases, and surging ETF holdings. Geopolitical tensions, including ongoing conflicts, have further bolstered gold’s safe-haven appeal in a low-yield environment.
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Broader Precious Metals Rally
Silver has stolen the spotlight with gains exceeding 150%, heading for its largest annual increase ever, driven by its critical mineral status, supply shortages, low inventories, and booming industrial demand. Spot silver dipped to $73 per ounce after a record $83 high. Platinum surged over 120%—its best ever—while palladium rose 65%, its strongest in 15 years. Analysts attribute recent volatility to thin holiday trading and margin hikes on futures. Looking ahead, experts like Ilya Spivak foresee gold potentially testing $5,000 in early 2026, as underlying catalysts remain self-sustaining amid persistent global risks and monetary policy support.