Metals: Year-End Drop, Historic Gains in 2025

Precious metals conclude 2025 with losses in the final session but with impressive annual returns. Gold and silver recorded multi-year and all-time highs due to inflationary concerns, easing monetary policy, and geopolitical uncertainty.

Spot gold fell by 1.4% to $4,286.89 per ounce, while February gold futures dropped 2% to $4,298.60 per ounce. Annually, gold has risen by over 60%, the strongest annual gains since 1979.

The 2025 gold rally is attributed to interest rate cuts, expectations of further monetary easing in the US, geopolitical conflicts, increased demand from central banks, and the expansion of ETF exposure.

Silver recorded a drop of over 7% to $71.02 per ounce but is up over 140% in 2025, heading for its best year in history. Platinum fell by 12% to $1,935.35 per ounce but recorded gains of 110% annually. Palladium fell by 8.2% to $1,478 per ounce, closing the year with total gains of 66%.