Precious metals dominated markets in 2025, propelled by rising geopolitical tensions, expectations of looser monetary policy and fragile global economic conditions. Gold climbed to record highs, reaching $4,481 (€3,797) per troy ounce, marking a 55–70% increase year on year and one of the strongest annual rallies in decades. Silver, often considered the “lesser” metal, outpaced gold in percentage terms, gaining roughly 130–140% and hitting record levels near $69 (€58) per ounce by late 2025.
The Return of Safe-Haven Appeal
Once sidelined by modern financial instruments like currency, bonds and real estate, precious metals reclaimed investor attention in a year defined by tariff skirmishes, central banks reducing their reliance on the US dollar and persistent political volatility. Gold and silver surged again this week, with gold climbing 2.4% and silver jumping 3.4% amid heightened tensions between the US and Venezuela, following reports that the US Navy attempted to seize a third oil tanker linked to the South American nation. While gold does not move in direct response to Venezuela, these developments signal broader risks to markets. Political and security crises like the Venezuelan standoff illuminate simultaneous threats — potential energy supply disruptions, escalating sanctions, and intensifying great-power friction. Investors gravitate toward gold and silver because these assets are not controlled by any single government, do not depend on corporate earnings, carry no default risk and are harder to sanction or freeze.
January–March: Tariffs Drive Early Safe-Haven Demand
Gold started the year elevated as markets weighed inflation, interest rate uncertainty and spillovers from Russia’s invasion of Ukraine. In March, prices surpassed $3,000 (€2,544) per ounce for the first time in 2025 as fears grew over new US tariffs under President Donald Trump, particularly on steel and aluminium, alongside potential broader trade restrictions. Investors interpreted the developments as a sign of an expanding trade war and rising inflation risks, prompting safe-haven buying. Silver initially lagged, reacting more modestly during the first wave of demand.
April–June: Middle East Tensions Bolster Gold
The announcement of Trump’s Liberation Day tariffs on 2 April pushed spot gold above $3,100 (€2,628) per troy ounce as traders positioned for an escalating trade conflict. Gold climbed steadily through spring and early summer, reaching $3,354 (€2,842) as geopolitical stress widened, including heightened tensions between Iran and Israel. In late June, the US Air Force and Navy struck three nuclear facilities in Iran, further intensifying safe-haven demand.
July–September: Fed Standoff and Full Tariff Rollout
A public confrontation between Trump and Federal Reserve Chair Jerome Powell over interest rates strengthened gold’s mid-year rally. Trump criticized Powell for keeping rates high and pressed for cuts that Powell declined, fueling speculation of potential changes in Fed leadership. Spot gold rose above $3,400 (€2,883) per ounce through the summer, driven by both monetary policy uncertainty and ongoing global trade tensions. On 11 July, Trump unveiled a sweeping tariff package, much of which took effect on 1 August, reinforcing central banks’ trend of increasing gold holdings for long-term reserve diversification. Silver mirrored this rally, peaking at $38.46 per ounce in mid-July.
October–November: Gold Surpasses $4,000 Amid Mounting Risks
Gold broke the $4,000 (€3,392) mark in early October as safe-haven demand surged amid expectations of US Federal Reserve rate cuts and persistent geopolitical uncertainty. By 13 October, prices reached $4,133 (€3,504) amid US–China trade tensions, and although hopes for progress briefly pushed prices back below $4,000, the broader uptrend continued. Investors also monitored the looming US government shutdown and ongoing public criticism of Fed policy by the Trump administration. By late November, gold posted its fourth consecutive monthly gain, trading around $4,210 (€3,567), while silver hit a fresh high near $56.78 (€48.12).
December: Record Highs Amid Venezuela Crisis
Late December 2025 proved dramatic. Gold surpassed $4,490 per troy ounce and silver neared $70 per ounce as investors flocked to safe havens amid reports of US military activity and attempts to seize Venezuela-linked oil tankers. Markets factored in expectations of further Fed rate cuts in 2026, which could reduce real yields and provide additional support for bullion, compounded by a weakening US dollar, capping a historic year for precious metals.
