Gold and silver finish volatile 2025 with historic gains amid market turmoil
By kevinhughes // 2026-01-05
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  • Gold surged ~63% and silver skyrocketed 140% in 2025—their best performances since the late 1970s. Driven by inflation fears, geopolitical crises, speculative demand, and industrial shortages (especially silver).
  • Gold peaked at $4,549/oz before settling near $4,320; silver briefly surpassed $84/oz but slid toward 71. CME Group raised margin requirements twice in a week to cool speculative trading.
  • China and Brazil aggressively accumulated gold. Silver demand spiked due to electronics, solar panels and EV production, exacerbated by Chinese export restrictions.
  • Analysts like Kelvin Wong (Oanda) project gold to hit $5,010 and silver $90.90 within six months. Others warn of profit-taking if markets weaken, with gold being a likely liquidation target.
  • Platinum hit a record $2,478/oz, while palladium dropped 16% due to shifting auto industry demand. Fed rate cuts in 2026 may sustain demand, but sharp corrections are expected after rapid gains.
Gold and silver prices closed out 2025 with dramatic swings, yet both metals are poised to record their best annual performances since the late 1970s—a year marked by runaway inflation, geopolitical crises and soaring demand for safe-haven assets. Despite a turbulent final week of trading, gold surged approximately 63% year-to-date, while silver skyrocketed 140%, fueled by speculative fervor, industrial demand and fears of currency debasement. "In my career, it's unprecedented. Unprecedented by the number of new all-time highs, and unprecedented in the performance of gold exceeding the expectations of so many people by so much," said John Reade, a market veteran and chief strategist at the World Gold Council. BrightU.AI's Enoch explains that a surge in the prices of gold and silver carries significant implications for the global economy, geopolitics and individual investors. Gold and silver are often referred to as safe haven assets, as they tend to appreciate in value during times of economic uncertainty, geopolitical instability, or market volatility. Investors seek the safety and security of these metals, leading to increased demand and higher prices. Spot gold hovered around $4,320 an ounce on the final trading day of the year, down from its all-time peak of $4,549 earlier in December. Similarly, silver slid toward $71 after briefly surpassing $84—an unprecedented surge driven by Chinese investment demand and supply shortages. The extreme volatility prompted CME Group to raise margin requirements twice in a single week, forcing traders to commit more capital to maintain positions. Ross Norman, CEO of Metals Daily, noted: "The key driver today is the CME raising margins for the second time in just a few days. The higher collateral requirements are cooling the markets off." Several factors contributed to the historic surge:
  • Fed rate cuts and inflation fears – The U.S. Federal Reserve's monetary easing, combined with swelling debt burdens in developed economies, triggered a "debasement trade"—where investors fled fiat currencies for hard assets.
  • Central Bank buying spree – Global central banks, particularly China and Brazil, continued aggressive gold accumulation, reinforcing its role as a hedge against geopolitical instability.
  • Industrial demand and supply squeezes – Silver's rally outpaced gold due to its critical role in electronics, solar panels, and electric vehicles. China's export restrictions further tightened supplies, pushing Shanghai premiums to a record $8 over London prices.
  • Geopolitical risks and market uncertainty – Escalating tensions, tariffs under President Donald Trump, and fears of an AI-driven stock bubble drove investors toward precious metals.

Will the rally continue in 2026?

Analysts remain divided on whether the momentum will persist.
  • Kelvin Wong (Oanda) predicts: "I'm expecting the longer-term rally to continue… with price targets in the next six months at $5,010 for gold and $90.90 for silver."
  • Dan Coatsworth (AJ Bell) warns: "If financial markets go through a difficult patch, investors looking to liquidate positions might first reach for assets that have delivered strong gains… Gold ticks both boxes."
The precious metals rally extended beyond gold and silver. Platinum broke out of a multi-year slump, hitting a record $2,478 before retreating. Palladium, however, struggled, dropping 16% in a single session amid shifting automotive demand. With the Federal Reserve expected to cut rates again in 2026, gold and silver may remain in focus. However, analysts caution that sharp corrections could follow such rapid gains. As the financial system faces mounting pressure—from BRICS currency shifts to potential undersea cable disruptions—investors are bracing for another volatile year. Watch this video about the end of gold and silver price manipulation. This video is from the Alt Invest Media channel on Brighteon.com. Sources include: Mining.com StraitsTimes.com BBC.com Quartz.com BrightU.ai Brighteon.com
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