Gold Ends 2025 Near Record Highs Despite Profit-Taking
Gold prices dipped on Wednesday, marking the last trading day of 2025, yet they were poised to conclude the year with an impressive increase of over 60%. This surge was driven by a combination of U.S. interest rate easing, central bank purchases, and heightened geopolitical risks that bolstered demand for bullion. Spot gold was last down 0.3% at $4,332.62 an ounce by 02:10, as numerous investors opted to secure profits following a robust rally. U.S. Gold Futures decreased by 1% to $4,344.10. Gold reached an unprecedented peak of $4,549.71 per ounce earlier this week, positioning itself to conclude the year with a remarkable 64% increase—marking its most significant rise since 1979.
In 2025, gold distinguished itself as a prominent asset, bolstered by the Federal Reserve’s transition to monetary easing. The U.S. central bank implemented three interest rate cuts throughout the year, which reduced the opportunity cost of holding non-yielding assets and enhanced the attractiveness of gold. Markets are factoring in additional rate reductions in 2026, which bolsters bullish sentiment. Central bank purchases served as a crucial source of support, with numerous emerging market nations persistently increasing their gold reserves as part of their strategies to diversify away from the U.S. dollar. At Simultaneously, ongoing geopolitical tensions, particularly the conflicts in Eastern Europe and the Middle East, bolstered gold’s status as a safe haven throughout the year.
Other precious metals experienced even more significant increases. In 2025, silver prices experienced a remarkable surge of nearly 150%, driven by its dual role as a monetary metal and a significant increase in industrial demand. Robust demand from the solar energy sector, electric vehicles, electronics, and data centres has constrained supplies, while speculative buying has intensified price increases in a relatively limited market. Platinum experienced an exceptional year, surging over 110% as supply constraints and increasing demand propelled prices upward. Experts indicated that restricted mine production and prolonged underinvestment have rendered the platinum market susceptible to significant price fluctuations as demand increases.
Silver was last recorded at $72.24 per ounce, reflecting a decline of 5.5%, while platinum experienced a drop of 11%, settling at $1,968.71 per ounce. Although there was a slight easing from recent highs, precious metals generally outperformed the majority of asset classes in 2025. Inflows into exchange-traded funds and robust retail investment significantly bolstered the rally, particularly during times of increased market stress. Benchmark Copper Futures on the London Metal Exchange decreased by 1.1% to $12,499.20 a ton, whereas U.S. Copper Futures dropped 1.5% to $5.67 a pound.
