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Gold (GC=F) and silver (SI=F) have been two of the biggest winners in financial markets this year as momentum in the precious metals trade pushed prices to all-time highs with just a handful of days left in 2025.
Gold’s year-to-date rally topped 70% on Monday, and on Tuesday the price of an ounce of gold briefly broke above $4,500. That set another record during a year that has seen the yellow metal hit 50 all-time highs.
The price of silver has had an even stronger 2025, more than doubling since January fueled by strong industrial demand and physical shortages. The metal continued to notch new all-time highs on Tuesday after topping $69 an ounce on Monday.
Both gold and silver are on track to deliver their largest annual gain since 1979.
Read more: Thinking of buying gold? Here’s what investors should watch for.
The rally in the precious metals space has come as investor focus in 2025 has spread across nearly every risk asset — from cryptocurrencies and the AI trade to European stocks.
But gold and silver are increasingly standing out as the trades of the year.
“In the new paradigm, gold is being viewed as a currency rather than a commodity,” Shree Kargutkar, senior portfolio manager at Sprott Asset Management, told Yahoo Finance.
Strategists point to a shake-up in the traditional 60% stocks and 40% bonds portfolio.
“Investors are just getting smarter,” Blue Line Futures chief market strategist Phil Streible told Yahoo Finance. “They’re realizing they need to add strategic commodities such as gold, silver, and copper to their portfolios for diversification.”
Read more: How to invest in gold in 4 steps
In the case of gold, central bank hoarding, exchange-traded funds (ETFs) purchases, a weaker dollar, and falling interest rates have served as major tailwinds. Few of these are expected to ease in the year ahead.
President Trump is expected to soon announce his pick to replace Federal Reserve Chair Jerome Powell, whose term ends in May, raising expectations that a dovish Fed and “run-it-hot” policy could further boost prices.
Some Wall Street analysts also see more room to run as central banks continue to be “sticky” net buyers for gold. Goldman Sachs reaffirmed its “structurally bullish” outlook with a price target of $4,900 by the end of 2026, with an upside risk if underallocated private investors add to their portfolios.
The World Gold Council suggests more fiscal spending, central bank demand, and lower rates could buoy prices another 5%-15% next year.
“If economic growth slows and interest rates continue to fall, gold could see moderate gains,” Joe Cavatoni, senior market strategist at World Gold Council, told Yahoo Finance on Monday. “In a more severe downturn marked by rising global risks, gold could perform strongly.”