Gold Hits Record Highs
Gold had a huge year in 2025, rising more than 60%. It reached a record $4,549 an ounce before slipping slightly after Christmas to about $4,330.
Silver Also Soars
Silver also went up sharply, hitting an all-time high of $83.62 earlier this week. It is now trading around $71 per ounce. Experts say both metals saw big gains because of economic uncertainty, investor interest, and global tensions.
Why Prices Rose
Expectations that the US Federal Reserve may cut interest rates in 2026 were a key factor. Central banks buying gold and investors seeking “safe” assets also helped push prices higher.
“Gold and silver prices are rising due to a mix of economic, investment, and global issues,” said Rania Gule from trading platform XS.com.
Experts Warn of Possible Corrections
Although prices are strong, experts caution that the big gains in 2025 could lead to a pullback next year. Dan Coatsworth from AJ Bell said investors often sell assets that rose sharply if markets get shaky.
Supply and Global Policies Impact Silver
Silver prices were boosted by supply shortages and industrial demand. China, the world’s second-largest silver producer, limited silver exports this year, a move Elon Musk warned could hurt industrial processes.
Investments and ETFs
ETFs have made it easier to invest in gold and silver without holding the physical metal. Analysts say silver could rise further in 2026, but sudden drops are possible after rallies.
