Gold set to test $3,750 this year

Gold is within a few dollars of posting a fresh all-time high, while silver currently trades at levels last seen nearly a decade and a half ago.

Foreign central bank demand – reflecting a broader shift away from traditional safe-haven US Treasuries – continues to drive gold ever higher.

Meanwhile, silver is 40% higher on the year on a combination of strong industrial demand and continuing safe haven appeal.

Ongoing rate cuts by major central banks are set to keep driving up gold and silver prices amid enduring geopolitical tensions and economic uncertainties.

The fundamental drivers supporting both metals remain robust, buoyed by continued central bank diversification away from dollar-denominated assets (US Treasuries). A recent report by fund manager Crescat Capital shows central banks’ gold holdings overtaking US Treasury holdings for the first time in nearly three decades.

In addition, persistent geopolitical uncertainties, accommodative monetary policy, and silver’s role in the green energy space continue to drive prices ever higher. This convergence of factors suggests both precious metals are set to print new highs in 2025 and beyond as buyers continue to control price action.