New Delhi, 28 December (H.S.):

The year 2025 turned out to be a remarkable year for precious metals such as gold, silver, and platinum, with all three witnessing an extraordinary rally throughout the year. By December-end, these shining metals had reached their all-time highs, breaking multiple records in both international and domestic markets.In the global markets, spot gold prices surpassed the USD 4,530 per ounce mark—an unprecedented level in history.

Similarly, silver outperformed all projections, surging past USD 75 per ounce, while platinum too witnessed a phenomenal rise, crossing USD 2,400 per ounce by the end of the year.

According to market analysts, one of the primary reasons behind gold’s meteoric rise has been the aggressive gold accumulation by central banks across multiple countries as part of efforts to strengthen their foreign exchange reserves.

Additionally, steady inflows into Gold Exchange-Traded Funds (ETFs) throughout the year supported the upward rally.Experts note that the U.S. Federal Reserve’s three consecutive interest rate cuts during 2025 further bolstered gold prices. Lower interest rates generally weaken the U.S. dollar and increase demand for gold as a safe-haven asset.

Analysts predict that the Federal Reserve may continue reducing interest rates in 2026, which could sustain bullish momentum in the precious metals market.

Sharp Currency Movements and Commodity Strength

Commodity market expert Mayank Mohan pointed out that despite a decline in the Indian rupee’s value during 2025, the overall U.S. Dollar Index weakened in the global forex market. This week, the Bloomberg Dollar Spot Index dropped by 0.70 percent, marking its largest weekly decline since June 2025.

Mohan explained that the weakening dollar provided strong support to gold and silver, leading to substantial price appreciation. He added that fluctuations in the dollar index have historically been a major driver behind gold and silver price movements.

In 2025, gold prices surged nearly 70 percent, while silver skyrocketed over 150 percent—the most dramatic single-year jump since 1979.

Silver Demand Outpaces Supply

Silver’s rally was also fueled by surging industrial demand and tight global supply, pushing prices from around USD 28 per ounce early in 2025 to a record USD 76 per ounce by December. Analysts attribute this upward trend to continuous investment inflows in Silver ETFs, as investors sought safe-haven alternatives amid global economic uncertainty.

Market observers note that the renewed industrial demand for silver—especially from sectors such as renewable energy, solar manufacturing, and electronics—kept demand ahead of supply, driving silver to historic heights.

Platinum’s Stunning December Rally

In addition to gold and silver, platinum too experienced a significant rise in value. Just in December 2025, the metal’s price jumped by over 40 percent, marking one of its strongest monthly performances in decades. Supported by industrial and jewelry demand, platinum broke past the USD 2,400 per ounce threshold for the first time, signaling renewed investor interest in the metal after years of underperformance.

Global Economic Outlook

Economists believe that geopolitical uncertainties, central bank diversification away from the U.S. dollar, and expectations of slower global economic growth have together contributed to the precious metals boom of 2025. With inflationary pressures easing in major economies, investors have increasingly turned to tangible assets like gold and silver to preserve long-term value.

As 2025 draws to a close, experts agree that this year will be remembered as one of the most volatile yet rewarding periods in the history of the bullion market. Early indicators suggest that 2026 could extend this momentum, provided global monetary policies and investor sentiment remain supportive of precious commodities.

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Hindusthan Samachar / Jun Sarkar