Core Insights - Gold and silver futures reached record highs in 2025, driven by investor demand for hard assets amid changing monetary policy, geopolitical instability, and supply constraints [1][2][3] Price Performance - Gold futures surpassed $4,470 an ounce, marking a 70% increase year-to-date, the strongest annual performance since 1979 [1][3] - Silver prices rose over 130% year-to-date, reaching approximately $69 an ounce, influenced by investor demand, industrial usage, and supply disruptions [2][7] Market Dynamics - The Federal Reserve's rate cuts removed a significant barrier for precious metals, making them more attractive as yields fell and the US dollar weakened, which increased global demand [4][6] - Geopolitical tensions, including US actions against Venezuela and Ukraine's military actions, heightened market uncertainty, prompting investors to seek safe-haven assets [5][6] Institutional Demand - Central banks from countries like Poland, Brazil, Uzbekistan, and China have significantly increased their gold purchases, tightening supply and supporting higher prices [7][8] - Investment flows into gold- and silver-backed exchange-traded funds have accelerated, attracting institutional money and reinforcing bullish market momentum [8] Supply Constraints - Silver's price surge has been exacerbated by supply constraints, with mine production failing to meet demand and expectations of future shortages driving aggressive bidding [13] - Industrial demand for silver, particularly in renewable energy and advanced manufacturing sectors, has further tightened the market [14]