Gold and silver prices hit historic highs!

2025 lays the foundation for a bull market in precious metals. Gold's unilateral upward trend throughout the year only experienced a brief pullback, rising from a low at the beginning of the year to above $4500 per ounce by the end of the year, representing a 64% increase for the year; Although silver has lagged behind in its trend, its increase has been even stronger, starting at $29 per ounce and breaking through $84 per ounce at the end of the year, with an annual increase of over 140%. It is expected to accelerate its rise in 2026, outperforming gold and other platinum group metals.

Macro positive news is the core support for price increases. The continuous weakness of the US dollar index has become a key driving force, with a decline of nearly 10% in 2025 and a continued weakness at the beginning of 2026. The US unemployment rate rose, the core CPI fell, and the market's expectation of easing from the Federal Reserve rose. In December 2025, the Federal Reserve restarted the purchase and expansion of treasury bond bonds, and the global central banks simultaneously relaxed, lowering the real interest rate and improving the allocation value of precious metals.

The escalation of geopolitical risks has strengthened the safe haven properties of precious metals. At the beginning of 2026, the United States will exert strong pressure on Venezuela and Iran, and conflicts in Eastern Europe and the Middle East will escalate, causing funds to flow into gold and silver as a safe haven. At the same time, the increase in holdings by central banks of various countries has formed long-term support. In 2025, global central banks will purchase 900-1000 tons of gold, which is slightly lower than the peak but far higher than before the epidemic. The core is to reduce dependence on the US dollar, achieve reserve diversification, and highlight the strategic value of gold.

The dual attributes of "currency+industry" in silver have led to a more rapid increase in its price. In terms of monetary attributes, by April 2025, the gold silver exchange rate will rise above 105, and low-priced and highly elastic silver will become a substitute for gold, attracting capital to enter the market; In terms of industrial attributes, the green energy and AI revolution have generated demand, with photovoltaics being the largest consumer sector, with a demand of 6147 tons in 2024 and an expected 8900 tons in 2030. New energy vehicles, 5G, and other technologies are also expanding their applications. The supply side continues to be under pressure, with a continuous gap in the market for 5 years, reaching 3660 tons by 2025, and the supply-demand contradiction pushing up prices.

Institutions generally believe that the bull market will continue, but volatility will intensify. Goldman Sachs and JPMorgan Chase predict that gold will maintain a structural bull market, driven by central bank gold purchases, Federal Reserve interest rate cuts, and safe haven demand; Although silver has fundamental support, its price has exceeded expectations. Institutions have warned of short-term pullback risks, and the Federal Reserve's policy adjustments, profit taking exits, or volatility may be triggered. Exchange guarantees and the rebound of the US dollar will also limit its gains.