A number of factors contributed to the rally. One of them was the imposed by President Donald Trump that led to concerns regarding inflation, making investors turn their attention towards gold as a safe haven.
Events in the Middle East and the war in Ukraine added to global uncertainty. Central banks also kept buying gold to reduce their dependence on the dollar for reserves.
At the same time, the interest rate cuts reduced the opportunity cost of holding non-yielding assets such as gold. The trade-related fears of inflation and a declining dollar backed up the precious metal’s price increase.
Exchange-traded funds (ETFs) backed by physical gold saw continued inflows, with the total assets of the global gold ETFs reported to be just above $500 billion by late 2025.
Silver had strong industrial demand, rapid growth of solar power installations, electric vehicles, and a tightening of supply that led to its price increase.