Precious metals emerged as some of the strongest-performing assets of the year, propelled by rising geopolitical risk, expectations of looser monetary policy and a fragile sense of global economic stability. Gold surged to unprecedented levels in 2025, recently reaching as high as $4,481 (€3,797) per troy ounce — a year-on-year increase estimated between 55% and 70%, marking one of its most powerful annual rallies in decades. Silver, long viewed as gold’s lesser counterpart, delivered even more dramatic gains, climbing roughly 130% to 140% over the year and hitting record levels near $69 (€58) per ounce by late 2025.
Once seen as relics of an earlier financial era, precious metals regained prominence in a year defined by tariff escalation, persistent political tension and a growing push by central banks to reduce reliance on the US dollar. Investors returned to gold and silver as traditional safe havens amid trade retaliation, geopolitical flashpoints and concerns about the durability of modern financial assets.
That dynamic was on full display this week, when gold rose as much as 2.4% and silver jumped 3.4% as tensions escalated between the United States and Venezuela. The move followed reports that the US Navy attempted to seize a third oil tanker linked to the South American country. While Venezuela does not directly determine gold prices, such events act as catalysts by signalling a broader cluster of risks to markets — from energy supply disruption and sanctions escalation to renewed great-power friction.
Gold and silver tend to attract investors during these periods because they operate outside the control of any single government, do not rely on corporate earnings, carry no default risk and are far harder to sanction or freeze than financial assets. As geopolitical uncertainty intensified throughout 2025, those qualities became increasingly valuable. Below is a chronological look at the key moments that shaped precious metal prices over the year.
January–March: Tariffs revive early safe-haven demand
Gold entered the year already elevated, reflecting lingering concerns about inflation, interest rates and spillover risks from the ongoing Russian invasion of Ukraine. While prices had not yet reached record territory, demand remained firm. In March, gold broke above $3,000 (€2,544) per ounce for the first time in 2025 as fears mounted over new and expanded US tariffs under President Donald Trump, particularly targeting steel, aluminium and potentially broader trade categories. Markets interpreted the moves as signs of an intensifying trade war and higher inflation risk, prompting investors to seek refuge in gold. Silver responded more cautiously during this early phase.
April–June: Middle East tensions accelerate the rally
Momentum intensified in early April after Trump’s so-called Liberation Day tariffs were announced on 2 April. Spot gold prices surged toward record highs above $3,100 (€2,628) per troy ounce as traders reacted to the growing risk of a prolonged trade conflict. Through spring and early summer, gold continued its steady ascent, reaching new peaks of up to $3,354 (€2,842) per troy ounce as geopolitical stress broadened. Renewed tensions in the Middle East, particularly between Iran and Israel, added fuel to the rally. In late June, the US Air Force and Navy carried out strikes on three nuclear facilities in Iran as part of the Iran–Israel war, reinforcing gold’s role as a geopolitical hedge.
July–September: Rate expectations and a full tariff rollout
A public confrontation between President Trump and Federal Reserve Chair Jerome Powell over interest rates further strengthened gold’s mid-year rally. Trump repeatedly criticised Powell for keeping rates high and pushed for cuts that the Fed declined to deliver, fuelling speculation about possible changes to Fed leadership. Over the summer, spot gold climbed above $3,400 (€2,883) per ounce, supported by both monetary policy uncertainty and persistent unease over global trade. On 11 July, Trump announced a sweeping tariff package, much of which took effect on 1 August after delays following the initial April rollout. The measures reinforced a broader trend of central banks increasing gold holdings as part of long-term reserve diversification. Silver continued its strong run as well, reaching $38.46 per ounce in mid-July.
October–November: Gold breaks $4,000 amid mounting risks
Gold crossed the $4,000 (€3,392) per ounce threshold in early October as investors balanced expectations of US Federal Reserve rate cuts against persistent geopolitical and policy uncertainty. By 13 October, prices climbed above $4,133 (€3,504) amid ongoing US–China trade tensions. Late October brought a brief pullback below $4,000 (€3,392) as hopes for progress in trade talks emerged, 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. Silver advanced alongside it, setting a fresh record near $56.78 (€48.12) per ounce.
December: Venezuela tensions cap a historic year
The most dramatic moves came in late December. Gold reached new record highs above $4,490 per troy ounce, while silver climbed close to $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 increasingly priced in further US Federal Reserve rate cuts in 2026, a shift that could reduce real yields and lend additional support to bullion prices. That outlook, combined with a weakening US dollar and persistent geopolitical unease, cemented 2025 as a landmark year for precious metals.
