The precious metals market witnessed a historic rally in 2025. On December 22, spot gold surpassed the $4,400 per ounce mark for the first time, setting a new all-time high with a year-to-date gain of nearly 70%. Meanwhile, silver, platinum, and palladium also hit record highs, marking a collective surge across the sector.
During trading on December 22, silver reached $69 per ounce for the first time, posting a year-to-date increase of over 130%. Platinum prices also broke through the $2,000 per ounce level for the first time since 2008, climbing more than 126% this year. As a result, gold, silver, and platinum all doubled in value over the year, with gold’s annual gain ranking as the second-largest since 1979.
Analysts attribute the broad-based rally to multiple macroeconomic, monetary policy, and geopolitical factors. Wu Zewei, a researcher at Suzhou Commercial Bank, noted that the surge reflects market consensus on these key drivers. Ming Ming, chief economist at CITIC Securities, added that expectations of Federal Reserve rate cuts, persistent geopolitical uncertainties, and sticky U.S. inflation have all contributed to the upward momentum.
Li Huihui, a professor at Emlyon Business School, described the rally as more than just a "safe-haven" or "inflation-hedge" play. Instead, he emphasized the combined effects of loose monetary cycles, high fiscal deficits, and a global manufacturing recovery. He referred to gold as a "thermometer of monetary trust," citing declining confidence in sovereign currencies and accelerating de-dollarization as core drivers.
Investor interest is evident in fund flows, with the SPDR Gold Trust and iShares Silver Trust both recording significant inflows. The latter saw its largest single-day increase since January 2023.
Amid the market frenzy, regulators have stepped in. The Shanghai Futures Exchange announced measures on December 22 to curb risks in silver futures, including adjustments to trading limits and intraday fees.
Looking ahead, institutions remain bullish. Goldman Sachs analysts project gold prices to rise further in 2026, with a base-case target of $4,900 per ounce. JPMorgan expects gold to surpass $5,000 by late 2026, driven by strong investor demand and sustained central bank purchases.
Disclaimer: Market risks exist; invest with caution. This content is AI-generated based on third-party data and should not be considered personal investment advice.
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