Precious metals emerged as some of the strongest-performing assets this year, powered by escalating geopolitical risk, expectations of looser monetary policy and a fragile sense of global economic stability. Investors returned to gold and silver in force, pushing both metals to record highs and delivering gains rarely seen in modern markets.
Gold prices surged to unprecedented levels in 2025, climbing as high as $4,481 (€3,797) per troy ounce — an increase of roughly 55–70% year on year and one of the most powerful annual rallies in decades. Silver, long regarded as gold’s lesser counterpart, outperformed in percentage terms, posting annual gains of around 130–140% and reaching record territory near $69 (€58) per ounce by late 2025.
Once considered a relic of earlier financial systems and overshadowed by currencies, bonds and real estate, precious metals staged a decisive comeback. A year defined by tariff retaliation, central banks reducing their dependence on the US dollar and persistent political tensions revived demand for assets seen as politically neutral and resilient. Recent price action underscored this trend, with gold rising as much as 2.4% and silver jumping 3.4% in a single week as tensions escalated between the US and Venezuela, particularly after reports that the US Navy attempted to seize a third oil tanker linked to the South American country.
While Venezuela itself does not directly dictate gold prices, the episode sent a powerful signal to markets. A political and security confrontation of this scale alerts investors to multiple overlapping risks — energy supply disruption, sanctions escalation and renewed great-power friction. In such environments, gold and silver quickly regain appeal. They are not controlled by any single government, do not rely on corporate earnings, carry no default risk and are far more difficult to sanction or freeze, making them natural refuges during periods of instability.
Below is a timeline of the key events that shaped gold and silver prices throughout the year.
January–March: Tariffs revive early safe-haven demand
Gold entered the year at elevated levels, reflecting ongoing uncertainty over inflation, interest rates and spillover risks from the war in Ukraine. Momentum accelerated in March, when prices broke above $3,000 (€2,544) per ounce for the first time in 2025. The move followed growing fears over new and expanded US tariffs under President Donald Trump, particularly on steel and aluminium, alongside the prospect of broader trade measures. Markets interpreted these developments as signs of an intensifying trade war and rising inflation risk, prompting investors to increase exposure to gold. Silver initially lagged, reacting more cautiously during the early phase of the rally.
April–June: Middle East conflict intensifies the rally
The announcement of Trump’s so-called Liberation Day tariffs on 2 April marked another turning point. Spot gold surged toward record highs above $3,100 (€2,628) per troy ounce as traders positioned for an escalating global trade conflict. The metal continued to grind higher through spring and early summer, eventually reaching new peaks of up to $3,354 (€2,842). Broader geopolitical stress reinforced the move, particularly renewed tensions in the Middle East. In late June, the conflict intensified dramatically when the US Air Force and Navy struck three nuclear facilities in Iran amid the Iran–Israel war, further boosting demand for safe-haven assets.
July–September: Fed pressure and tariffs fuel sustained gains
A public confrontation between President Trump and Federal Reserve chair Jerome Powell over interest rates added fresh fuel to gold’s mid-year rally. Trump repeatedly criticised Powell for keeping rates elevated and pushed for cuts that failed to materialise, stoking speculation about potential changes in Fed leadership. Against this backdrop, spot gold climbed above $3,400 (€2,883) per ounce during the summer, supported by both monetary policy uncertainty and unresolved trade tensions. On 11 July, Trump unveiled a sweeping tariff package, much of which came into force on 1 August after earlier delays. The move reinforced a broader trend of central banks increasing gold holdings as part of long-term reserve diversification. Silver extended its own advance, reaching $38.46 per ounce in mid-July.
October–November: Gold breaks $4,000 amid mounting risks
Gold crossed the psychologically important $4,000 (€3,392) per ounce threshold in early October as investors balanced expectations of US rate cuts against persistent geopolitical and policy uncertainty. By 13 October, prices exceeded $4,133 (€3,504) amid ongoing US–China trade tensions. Later in the month, tentative optimism around trade talks briefly pushed gold back below $4,000, but the broader upward trend remained intact. Investors also monitored the risk of a US government shutdown and continued public criticism of the Federal Reserve 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, while silver hit a fresh record near $56.78 (€48.12) per ounce.
December: Venezuela tensions cap a historic year
Late December proved to be the most dramatic phase of the rally. Gold surged above $4,490 per troy ounce, while silver approached $70 per ounce as investors rushed into safe havens following reports of US military action and attempts to seize Venezuela-linked oil tankers. Markets also priced in expectations of further Federal Reserve rate cuts in 2026, a shift that could reduce real yields and continue to support bullion prices. Combined with a weakening US dollar, these forces cemented 2025 as a landmark year for precious metals.
