Gold prices were mixed on Wednesday during the final trading session of 2025, but the precious metal remained on track to close the year with gains of more than 60%. Strong demand was driven by U.S. interest rate cuts, sustained central bank buying, and ongoing geopolitical risks that boosted gold’s appeal as a safe-haven asset.
Spot gold edged up 0.1% to $4,343.24 per ounce by 09:37 ET, as some investors locked in profits following a sharp rally. U.S. gold futures, however, slipped 0.7% to $4,357.80.
Earlier in the week, gold reached a record high of $4,549.71 per ounce. The metal was set to finish the year up around 64%, marking its strongest annual performance since 1979.
Fed easing and central bank demand support gold rally
Gold emerged as one of the top-performing assets of 2025, supported by a shift toward monetary easing from the Federal Reserve. The Fed cut interest rates three times during the year, reducing the opportunity cost of holding non-yielding assets and increasing gold’s attractiveness.
Markets are also anticipating further rate cuts in 2026, reinforcing bullish expectations for bullion.
Central bank buying provided an additional pillar of support, with several emerging-market countries continuing to increase gold reserves as part of broader diversification efforts away from the U.S. dollar.
Geopolitical tensions, including ongoing conflicts in Eastern Europe and the Middle East, further underpinned gold’s safe-haven demand throughout the year.
Silver and platinum post outsized gains
Other precious metals recorded even stronger performances in 2025. Silver prices surged by nearly 150%, supported by its dual role as a monetary metal and rising industrial demand.
Consumption from solar energy, electric vehicles, electronics, and data centres tightened supplies, while speculative interest amplified price gains in a relatively small market. Silver last traded 4.1% lower at $73.18 per ounce.
Platinum also delivered a standout performance, climbing more than 110% over the year. Analysts pointed to supply constraints, limited mine output, and years of underinvestment, which left the market vulnerable to sharp price moves once demand improved. Platinum was last down 5.7% at $2,056.19 per ounce.
Despite some pullback from recent highs, precious metals broadly outperformed most asset classes in 2025. Strong exchange-traded fund inflows and robust retail demand helped sustain the rally, particularly during periods of heightened market uncertainty.
Meanwhile, U.S. copper futures declined 1.9% to $5.67 per pound.
