Gold has sparkled in 2025 like few assets before, notching a blistering 65% price gain as it barreled toward $4,400 an ounce—retaking record highs multiple times and electrifying the precious metals market in the final weeks of the year. Silver, meanwhile, pulled off a jaw-dropping 130% surge, outshining not just its gold sibling in sheer percentage terms, but even the tech-heavy Nasdaq, which climbed more than 80% since pandemic lows.
What’s driving this gold rush? It’s not the usual culprit—rampant inflation. Instead, a stew of global anxieties is fueling metals demand: geopolitical uncertainty, tough tariff talk, and a dollar that’s lost some of its swagger. “Gold’s recent rise appears to have little to do with inflation and more to do with geopolitical risk, tariff concerns, a weakened dollar, and more,” a market strategist told Yahoo Finance on Monday. Central bank buying and strong industrial demand have added their own sparks to the price fire, helping erase fears that rising rates would dampen gold’s appeal.
Gold and Silver ETFs: Not All That Glitters Is The Same
Investors wanting a slice of the shiny action have several options. Exchange-traded funds like GLD (tracking gold) and SLV (tracking silver) have swelled with cash thanks to their direct exposure to spot prices. But here’s the rub: GLD, the gold ETF, is less jumpy, with lower volatility and drawdowns over the past five years. Silver ETFs, historically, bring wilder rides—higher risk, perhaps, but clearly higher reward this year.
The World Gold Council isn’t calling a top just yet, either. Its senior strategist, Joe Cavatoni, suggested prices could rise another 5% to 15% in 2026, particularly if economic growth cools and interest rates fall. Even so, some on Wall Street are wary about the potential for a sharp pullback after such a steep ascent. Gold prices as tracked by SPDR Gold Shares (GLD) are now up an eye-popping 140% over the past three years.
The Unlikely Tandem: Gold and Tech Lead Markets Higher
What makes 2025 truly unusual is that gold’s rocket ride has played out alongside a historic tech rebound, rather than during a stock selloff. The “Magnificent 7” and artificial intelligence mania have sent the Nasdaq index and big growth names soaring, even as anxiety around a possible AI bubble percolated. This split-screen market—optimism for future tech profits next to fear-driven gold buying—harks back to 2020 and 2021, when pandemic stimulus sent all manner of assets roaring ahead.
With only days left in what’s been one of the wildest years for markets, gold and silver look set to finish as the undisputed winners of 2025. Whether the momentum can run into 2026 depends on plenty of wild cards—central banks, interest rates, tariffs, and, of course, the unpredictable ebb and flow of investor psychology.
