Gold and silver prices retreat as traders lock in gains
Gold prices edged lower on Wednesday in the final trading day of 2025, but were set to end the year with gains of more than 60% as U.S. interest rate easing, central bank buying, and geopolitical risks fueled demand for bullion.
Spot gold was last down 0.3% at $4,327.45 an ounce by 05:17 ET (10:17 GMT), with many investors locking in profits after a powerful rally. U.S. Gold Futures slipped 1% to $4,340.10.
Gold hit a record high of $4,549.71/oz earlier in the week, and was set to end the year 64% higher -- its largest rise since 1979.
Gold’s rise supported by Fed easing, central bank buying
Gold emerged as a standout asset in 2025, supported by the Federal Reserve’s shift toward monetary easing. The U.S. central bank cut interest rates three times during the year, lowering the opportunity cost of holding non-yielding assets and boosting the appeal of gold.
Markets are also pricing in further rate reductions in 2026, reinforcing bullish sentiment.
Central bank purchases provided another key pillar of support, with several emerging market nations continuing to add gold to their reserves as part of diversification strategies away from the U.S. dollar.
At the same time, persistent geopolitical tensions, including conflicts in Eastern Europe and the Middle East, underpinned gold’s safe-haven demand throughout the year.
Silver, Platinum surge over 100% in 2025
Other precious metals posted even more dramatic gains. Silver prices surged nearly 150% in 2025, benefiting from both its role as a monetary metal and a sharp rise in industrial demand.
Strong consumption from the solar energy sector, electric vehicles, electronics, and data centres tightened supplies, while speculative buying amplified price gains in a relatively small market.
Platinum also recorded a stellar year, rising more than 110% as supply constraints and improving demand drove prices higher. Analysts said limited mine output and years of underinvestment left the platinum market vulnerable to sharp price moves when demand improved.
Silver last traded 5.5% lower at $72.06/oz, while platinum slipped 7.2% to $2,025.16/oz.
Despite easing slightly from recent highs, precious metals broadly outperformed most asset classes in 2025. Exchange-traded fund inflows and strong retail investment further reinforced the rally, especially during periods of heightened market stress.
U.S. Copper Futures declined 2.1% to $5.66 a pound.(yds)
Source: Investing.com
