Gold closes 2025 at $4,531, silver rises above $75
Global markets greeted the end of 2025 with a historic and unprecedented surge in precious metals prices, as the price of gold surpassed $4,500 per ounce, while silver jumped above $75, recording its highest level in history.
Driven by a strong combination of liquidity expectations, a weak US dollar and geopolitical tensions, gold ended the year with its strongest annual performance since 1979 with gains of nearly 70% since the beginning of the year, outperforming most traditional asset classes.
Exceptional performance in the closing session
In trading on Friday, December 26, 2025, precious metals prices posted strong gains supported by low year-end liquidity and strong speculative momentum:
- Gold:
The spot price of gold rose 1.2% to $4,531 per ounce.
Futures for February 2026 delivery climbed to $4544.30.
- silver:
Silver outperformed gold, with spot prices jumping 4.5% to $75.14 per ounce, the highest level in its history.
- Other metals:
Platinum and palladium joined the rally, with platinum gaining a strong 7.92%.
The drivers of the historic rally: Why did prices jump?
It wasn't an accident, but a combination of several key factors that created an ideal environment for the rise of precious metals:
1- Expectations of continued monetary liquidity
The expectation of continued monetary easing by the U.S. Federal Reserve is the most important factor.
With two rate cuts expected in 2026, the alternative cost of holding non-income generating assets such as gold and silver is falling, increasing their attractiveness.
These expectations have been bolstered by talk that a new Fed chair may be appointed by January 2026.
2- Geopolitical Tensions and Safe Havens
Rising tensions in more than one region of the world have forced investors to seek safe havens to preserve value.
Tensions between the United States and Venezuela, where a 'blockade' of Venezuelan oil has been announced, as well as developments in Nigeria and the Middle East, have been in the spotlight recently.
In such an environment, the traditional demand for gold as a bulwark against uncertainty increases.
3- Weak US dollar
The dollar index fell to a two-month low, providing additional support for dollar-denominated gold and silver prices.
A weaker U.S. currency makes it cheaper for holders of other currencies to buy the two metals, boosting global demand.
4- Strong and sustained institutional demand
2025 saw heavy buying by global central banks seeking to diversify their reserves, as well as record inflows into precious metals-backed exchange traded funds (ETFs).
Holdings in the world's largest gold ETF have increased by more than a fifth since the beginning of the year.
Gold's projected targets and levels in 2026
- The psychological level of $5000: Many analysts believe that $5,000 per ounce has become a realistic target for gold in 2026, especially with the continuation of the current supportive factors, and some expectations indicate that this level can be reached in the first half of the year.
- Critical support levels: In the event of a correction, the main support areas to watch are centered around $4380-4316 (at the 50 and 200-day averages), followed by the $4040 area.
Silver Outlook
Analysts expect the positive supply and demand dynamic for silver to continue.
Some forecasts suggest that the silver price could reach $90 per ounce, benefiting from speculative momentum and strong market fundamentals, although volatility is possible due to the small market size.
In the end, gold and silver conclude an exceptional year, reaffirming their historic role as a safe haven and store of value in times of economic and geopolitical uncertainty.
As new and bullish targets for 2026 loom on the horizon, technical indicators and history remind us that strong trends can experience violent fluctuations.
So, whether you are a long-term investor who sees these metals as a cornerstone for hedging, or a short-term trader looking for opportunities in market volatility, risk management and understanding the underlying drivers remain the keys to success in this bright and volatile market.
