GOLD keeps on giving in the closing stages of 2025, rising above $4,500 an ounce on Boxing Day and making strides for $4,600 on Monday before both the price fell back due to profit-taking and the prospect of an end to the war in Ukraine.
Silver has also continued to surge in recent days. Just over a week ago the metal was making eyes at $70 but breached $80 overnight, a new all-time high.
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said: “Gold and silver have been on an absolute roll before slipping back today on profit-taking to $4,485 and $75 respectively.
“Gold has gained over 70% this year in its best performance since 1979, while silver has risen over 167%. Several analysts now see $5,000 gold as feasible in 2026, given geopolitical tensions and central bank buying, which has more than doubled from historical norms.
“Silver’s $100 target is slightly more speculative but still possible due to industrial demand from solar, EVs and critical AI infrastructure.
“For current holders of precious metals such as silver and gold, the structural drivers — central bank accumulation, geopolitical fragmentation and Dollar concerns ahead of an expected dovish 2026 at the Federal Reserve — remain intact.
“For prospective buyers, chasing parabolic moves is risky. Consider dollar-cost averaging, waiting for pullbacks, or taking smaller position sizes.”
The trend is your friend
Trader David Belle at London-based Fink Money, cautioned investors to be wary of making only paper gains.
He said: “The trend is your friend. I take a quant view on trends and, right now, the gold and silver trend couldn’t be stronger. What we must be prepared for, of course, is a pull back, which is completely normal in markets, especially in strongly trending markets.
“Investors with no systematic risk management rules will be the ones who only achieve paper gains, or at least considerably lower gains than they could have achieved with rules in place.”
Prem Raja, Head of Trading Floor at Currencies 4 You, added: “The precious metals trade has continued to power through in December with gold and silver both rising in spectacular fashion.
“The Dollar debasement trade is very much still intact and with the latest restrictions on Silver coming out of China, this has helped silver bulls even more.
Currently, I expect gold to continue rising in 2026 but for silver to run out of steam on the path to $100. It is always wise to take profits on the way up to manage risk.
“After all, if we see stabilisation from a geopolitical perspective in 2026, then the current precious metal bull market may come to an end. So as we enter new highs on these metals, I do advise caution.”
People cashing in
Meanwhile, Jim Tannahill, Managing Director at London-based Suttons and Robertsons, a jeweller and pawnbroker, said his firm has seen a sharp rise in people selling unwanted gold and silver items.
He added: “We have also seen upwards of a 130% increase in people using our pawnbroking service to borrow against their gold and silver assets. For many of our customers, it means they can use the family silver to now borrow more than twice the amount we could offer at the start of the year.
“Whilst many still are taking advantage of high prices to sell unwanted or broken jewellery and silver pieces, we’re seeing a strong trend for holders of this asset class to leverage their gold and silver to unlock short-term cash without losing ownership so they can realise any future growth potential.
“Those who took that decision earlier this year will already have benefited from the exponential growth.”
But Anita Wright, Chartered Financial Planner at Ribble Wealth Management, believes that while $5,000 gold and $100 silver are possible in 2026, they are not inevitable despite recent sharp jumps.
She said: “The more relevant point is liquidity. Gold is liquid and least likely to be driven by a squeeze, although Comex speculative demand is rising. Silver is industrial: demand has been rising, and China is tightening silver exports from 2026–27 as Indian industrial demand booms. Users are buying derivatives and standing for delivery; London silver lease rates spiked above 30% in October.”
