Gold and silver see rollercoaster end to blockbuster year
Gold and silver have had a bumpy end to a year in which their prices were on track to post their biggest annual increases since 1979.
The price of gold has risen by more than 60% this year, reaching a record high of over $4,549 (£3,378) per ounce, before falling after Christmas, falling to around $4,350 on New Year’s Eve.
At the same time, silver was trading at around $74 an ounce after reaching an all-time high of $83.62 on Monday.
This year’s gains have been driven by a variety of reasons, including expectations for further interest rate cuts, gold purchases by central banks and investors buying so-called “safe haven” assets amid concerns about global tensions and economic uncertainty.
“Gold and silver prices are experiencing a significant increase due to the interaction of various economic, investment and geopolitical factors,” said Rania Gule of trading platform XS.com.
He added that the main reason for the price increases in precious metals is the expectations that the US Federal Reserve will cut interest rates again in 2026.
Central banks around the world have added hundreds of tonnes of gold to their reserves this year, according to the World Gold Council trade association.
Daniel Takieddine, co-founder of investment firm Sky Links Capital Group, points out that “supply tightness and industrial demand” are helping to drive up the price of silver.
China, the world’s second largest silver producer, announced that it will restrict exports of the precious metal.
In October, China’s Ministry of Commerce announced new restrictions on the export of tungsten and antimony metals, as well as silver, “in order to accelerate the protection of resources and the environment.”
Responding to a post on social media about the restrictions imposed by the Chinese government on silver exports, Tesla boss Elon Musk said, “This is not good. Silver is needed in many industrial processes.” he said.
Mr. Takieddine also highlighted the large amounts of money flowing into the precious metals market through investments such as exchange-traded funds (ETFs).
ETFs are baskets of investments that trade on the stock exchange like a single stock. Since investors do not need to own physical bullion, they can be seen as a convenient way to trade precious metals.
Ms. Gule said she expects gold to continue rising in 2026, but at a “more stable pace compared to the record levels observed in 2025.”
Mr Takieddine said silver also had the potential to rise again next year. However, he warns that “rallyes may be followed by sharper corrections.”
