Precious metals delivered one of the standout market stories of 2025. By the end of December, the US dollar price per troy ounce of gold ( measured by the WMR Gold 4pm London closing price) had risen 65.2% over the year, while silver (measured by WMR Silver 4pm London) surged 150.1% over the same period.
This performance meaningfully outpaced broad equity markets: the Russell 3000® index of US stocks gained 17.2% over the calendar year, while the FTSE All-World index advanced 23.1%.
Indices with exposure to precious metals and mining equities also posted outstanding performance: the FTSE Gold mines index, which encompasses companies with gold production of at least 300,000 ounces a year and that derive 51% or more of their revenue from mined gold, had gained 166.4% by the end of December.
In 2025, the cryptocurrency bitcoin failed to live up to its promise as “digital gold”: the FTSE Bitcoin index fell 6.4% over the year.
In this FTSE Russell Insight, we outline the key drivers of the precious metals rally and describe how WMR metals benchmarks can support precious metals investors.
Gold and silver spot rates in 2025
Gold: strategic demand and safe haven appeal drive exceptional rally
Gold’s ascent in 2025 reflects a mix of structural and tactical forces.
Gold has reasserted its role as the market’s preferred safe haven and as a barometer of geopolitical risk. At the beginning of 2025, rumours of incoming import tariffs in the US led to large volumes of gold being shipped to New York, contributing to perceptions of tight supply [note1].
Persistent macroeconomic uncertainty and expectations of more rapid monetary easing in the US also contributed to gold’s gain. With the US dollar under pressure and markets volatile, investors turned to gold for its neutrality, lack of credit risk and long record as a store of wealth in periods of stress.
Central bank accumulation has also been one of the defining gold market themes since 2022 as reserve managers looked to diversify away from dollar-denominated assets. These steady official-sector purchases, together with technology-related demand and seasonal buying across Asia, have reinforced gold’s scarcity premium at a time of relatively inelastic mine supply.
From an investment perspective, gold continues to behave as a flexible hedge within multi-asset portfolios. Its low correlation to equities, bonds and some commodities offers diversification benefits, particularly when traditional asset classes move together.
Capital tends to flow into gold during inflationary or deflationary shocks with partial reversals as confidence stabilises. In the current environment of policy divergence and rising geopolitical risk, gold functions as a strategic tool for navigating uncertainty.
Exchange-traded fund (ETF) flows into gold have been persistently strong, with record inflows throughout the year and across geographical regions. According to the World Gold Council, total assets in gold ETFs reached US$530bn by end-November, with bullion holdings rising to 3,932 tonnes, the highest month-end values ever.
There have been notable inflows into gold ETFs in China and India, where multi-asset funds commonly allocate 10-15% of their portfolios to the precious metal.
Gold ETFs monthly change (Regionwise)
Gold ETF Holdings In China and India
Silver: rising prices supported by tight supply and shifting policy dynamics
Silver has shared many of the same macro drivers as gold, though its market structure has produced distinct price dynamics.
Silver prices climbed as investors responded to expected US Federal Reserve rate cuts and continued volatility in major currencies. Policy signals have also mattered: the metal’s recent addition to the US Geological Survey’s critical minerals list has spurred inflows into US markets amid concerns that future tariff measures may affect silver.
According to the Silver Institute, a non-profit global industry association, the market is set to record its fifth consecutive annual deficit in 2025, reflecting tight supply and rising investment demand. This cumulative deficit, approaching 820 million ounces since 2021, has reinforced silver’s perceived scarcity. [note2]
Industrial demand has provided an additional tailwind, reflecting silver’s role in solar manufacturing and advanced semiconductors linked to artificial intelligence. Perceptions that silver was undervalued relative to gold earlier in the year, combined with stronger sentiment in the broader industrial metals complex, have further contributed to silver’s exceptional performance in 2025.
Tracking the precious metals markets with WMR benchmarks
Launched in 2024, the WMR metals benchmarks extend the WMR FX benchmark framework—recognised worldwide as the global standard for currency valuation and reporting—into the precious metals market. Responding to growing demand for consistent and transparent reference rates across new asset classes, the benchmarks apply WMR’s trusted governance and established methodology to spot gold, silver, platinum and palladium.
The WMR metals benchmarks offer both closing and intraday rates, providing full regional coverage for users who require timely and reliable valuations. They follow the same methodology used for WMR Spot FX, are aligned with International Organization of Securities Commissions’ benchmark principles and are fully compliant with EU and UK benchmark regulations.
The WMR metals benchmark rates support a broad range of market applications, including:
- Settling financial contracts and derivatives
- Valuing investment funds
- Measuring portfolio performance
- Structuring investment products
- Executing spot trades
- Calculating indices
- Supporting reporting and audit processes
Contact us to speak with a WMR metals benchmark specialist and discuss how our solutions can support your investment strategies in the year ahead.
Sources
[1] London gold market queues up to borrow central bank gold after big shipments to US, sources say | Reuters | Back to Note 1
[2] The Silver Institute, “The Silver Market is on Course for Fifth Successive Structural Market Deficit,” November 13, 2025, https://silverinstitute.org/the-silver-market-is-on-course-for-fifth-successive-structural-market-deficit/ | Back to Note 2
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