Precious metals ranked among the year’s strongest-performing assets, buoyed by rising geopolitical risks, expectations of looser monetary policy and lingering questions over global economic stability. Investors returned to gold and silver as traditional safe havens at a time when trade conflicts, political flashpoints and shifts in reserve strategies unsettled markets worldwide.
Gold prices surged to unprecedented levels in 2025, recently touching highs of around $4,481 (€3,797) per troy ounce. That move represented an estimated 55–70% increase year on year, marking one of the most powerful annual rallies in decades. Silver, long viewed as gold’s lesser counterpart, delivered even stronger gains in percentage terms, climbing roughly 130–140% over the year and reaching record levels close to $69 (€58) per ounce by late 2025.
For much of modern financial history, precious metals ceded ground to currencies, bonds and real estate as preferred stores of value. In 2025, however, they staged a decisive comeback. Escalating tariff disputes, central banks reducing their dependence on the US dollar and persistent political tensions combined to revive demand for assets perceived as politically neutral and resilient.
That dynamic played out again this week, when gold rose as much as 2.4% and silver jumped 3.4% after tensions flared between the United States and Venezuela. Markets reacted strongly following reports that the US Navy attempted to seize a third oil tanker linked to the South American country. While gold prices have no direct connection to Venezuela, such episodes signal broader risks to investors, including potential energy supply disruptions, sanctions escalation and intensifying great-power rivalries.
Gold and silver tend to benefit quickly from these conditions. Neither asset is controlled by a single government, neither depends on corporate earnings, and neither carries default risk. They are also harder to sanction or freeze than many financial instruments, making them especially attractive during periods of political and security stress.
Below is a timeline of the key developments that shaped gold and silver prices throughout the year.
January–March: Tariffs and early safe-haven demand
Gold entered the year already trading at elevated levels, reflecting unease over inflation, interest rates and the wider economic fallout from Russia’s ongoing invasion of Ukraine. Although prices had not yet reached their later records, demand was steadily building.
In March, gold pushed above $3,000 (€2,544) per ounce for the first time in 2025 as concerns mounted over new and expanded US tariffs under President Donald Trump. Proposed measures targeting steel, aluminium and potentially broader sectors raised fears of a renewed trade war and higher inflation. Investors responded by increasing allocations to gold as a hedge, while silver initially lagged behind with a more subdued reaction.
April–June: Middle East tensions intensify the rally
Momentum accelerated in early April when Trump’s so-called Liberation Day tariffs were announced on 2 April. Spot gold quickly advanced toward record territory above $3,100 (€2,628) per troy ounce as traders priced in the risk of escalating trade disputes.
Gold continued to grind higher through spring and early summer, ultimately reaching new peaks of up to $3,354 (€2,842) per troy ounce. The rally drew strength from widening geopolitical stress, particularly renewed tensions in the Middle East. In late June, the situation escalated further when the US Air Force and Navy struck three nuclear facilities in Iran amid the Iran–Israel war, reinforcing gold’s appeal as a defensive asset.
July–September: Rate expectations and a full tariff rollout
A highly public dispute between President Trump and Federal Reserve chair Jerome Powell added fresh fuel to the mid-year rally. Trump repeatedly criticised Powell for maintaining high interest rates and pushed for cuts that did not materialise, prompting speculation about potential changes in Fed leadership and future monetary policy.
Against that backdrop, spot gold climbed above $3,400 (€2,883) per ounce during the summer. Persistent uncertainty over global trade policy also played a key role. On 11 July, Trump unveiled a sweeping tariff package, much of which had been delayed after the initial April rollout and largely came into force on 1 August. The measures reinforced a broader trend of central banks increasing gold holdings as part of longer-term reserve diversification strategies.
Silver extended its own rally during this period, reaching $38.46 per ounce in mid-July and confirming its status as one of the year’s standout performers.
October–November: Gold breaks $4,000 amid mounting risks
Gold crossed the $4,000 (€3,392) per ounce threshold in early October, driven by renewed safe-haven demand as investors weighed expectations of future US rate cuts against unresolved geopolitical and policy risks. By 13 October, prices had climbed beyond $4,133 (€3,504) amid ongoing US–China trade tensions.
Later in the month, tentative optimism over possible progress in US–China trade talks briefly pared gains, with gold slipping back below $4,000. The pullback proved short-lived, however, as investors continued to monitor the risk of a US government shutdown and ongoing public criticism of the Federal Reserve’s policy stance from the Trump administration.
By late November, gold was on track for its fourth consecutive monthly gain, trading around $4,210 (€3,567) on 28 November. Silver also advanced sharply, setting a fresh record near $56.78 (€48.12) per ounce.
December: Record highs amid Venezuela tensions
Late December marked the most dramatic phase of the rally. Gold surged to new records above $4,490 per troy ounce, while silver climbed toward $70 per ounce as investors rushed into safe havens following reports of US military action and attempts to seize oil tankers linked to Venezuela.
At the same time, markets increasingly priced in the prospect of further US Federal Reserve rate cuts in 2026. Expectations of lower real yields, combined with a weakening US dollar, added another layer of support for bullion, capping a year in which precious metals reasserted their role at the centre of global risk management.
