Monday became the day gold and silver priced officially skyrocketed to new all-time highs. This wave of momentum was further amplified by rising geopolitical concerns, expectations of interest rate reductions and the weakening US dollar. Gold soared to record $4,420 an ounce. That’s an incredible jump just from the start of the year, when technically it was still worth $2,600. This increase amounts to a significant boost of over 68%—the largest yearly increase seen since 1979.
Gold prices are booming at all-time highs. This jump is largely in anticipation of the US central bank, the Federal Reserve, reducing interest rates further over the next twelve months. Normally, moves like this increase gold’s attractiveness. When interest rates are low, as they are now given the Federal Reserve’s rate hikes, gold is a more competitive investment. The dollar’s recent weakness has made gold cheaper for foreign consumers, stoking demand even more.
Silver also hit its own landmark that day, rising to a record $69.44 an ounce. The metal has been on a remarkable run, up 138% year-to-date as of early May in 2025. This unprecedented spike truly emphasizes its character of safe haven asset amid economic distress. Platinum hasn’t been spared either, hitting a 17-year high, demonstrating the overwhelming new interest in precious metals.
The overarching theme for the precious metals market has always been the economic condition. It further reacts to mounting external pressures such as geopolitical tensions and trade wars. Analysts now point out that these dynamics created a perfect storm that is behind the sustained, recent price increases.
“You’ve got the trade war, the attacks on the US Federal Reserve and you’ve got geopolitical tensions, all of those provocations come from Trump,” – unnamed source
Adrian Ash, head of research at precious metals dealer and market-maker, GBI, has a razor-sharp insight into what’s happening. He stated that “slow-burning trends around interest rates, around war and trade tensions” have significantly impacted market behavior.
Gold is mostly traded on the spot market, where prices can move in seemingly unpredictable directions in an instant based on a multitude of factors impacting the market. With high demand still meeting heavy supply restrictions, the very meat and potatoes of this market is holding current pricing strong.