Precious metals, especially gold and silver, are expected to see further gains in the coming year following record price surges throughout 2025, according to a new report.

Gold and silver prices rose about 70–72% and 140–150%, respectively, year to date through December 26, says GlobalData, citing information from its macroeconomic database. It foresees further gains by end-2026 of around 8–15% for gold and 20–35% for silver.

“The 2025 rally in precious metals marks the beginning of a deep, structural shift in the international monetary system, from a US-centric framework towards a more multipolar order,” comments Ramnivas Mundada, director of economic research and companies at GlobalData.

“The move appears to reflect more than a typical safe-haven bid; it represents a strategic response by institutions and investors to rising geopolitical instability, a slowing US economy, ongoing trade frictions, and the accelerating trend towards de-dollarization.”

Among macroeconomic factors affecting the prices of precious metals are the US economic slowdown and monetary policy. The US Federal Reserve implemented multiple rate cuts in 2025, bringing the current rate to a range of 3.50%-3.75%. This easing cycle, combined with a softening US labour market, has lowered the opportunity cost of holding non-yielding bullion, the report says.

GlobalData also notes the impact of heightened tensions around the world, including conflicts in Eastern Europe, Middle East instability, and trade disputes involving Venezuela. Escalating US-China and US-India trade tensions, driven by higher tariffs, have also increased economic uncertainty and depressed global growth sentiment, driving investors towards safe havens, the report says.

Diversification trend

The most compelling structural driver is the coordinated effort by central banks to diversify reserves away from the US dollar, GlobalData says. The freezing of Russia's USD reserves post-2022 highlighted the political risks of dollar-based assets, prompting major buyers like India and China to accelerate gold accumulation. Central banks added a reported 220 tonnes of gold in the third quarter of 2025 alone.

In November 2025, the Securities and Exchange Board of India ( Sebi ), the country’s stock market regulator, issued a sharp reminder that digital gold platforms are not regulated securities. As this means investors lack regulatory protection and face significant counterparty risk, GlobalData suggests shifting core, long-term allocations to regulated, government-backed instruments like sovereign gold bonds or gold exchange-traded funds.

According to the report, the bull run will continue. Gold is expected to range from US$4,900 to US$5,100 per ounce by the end of 2026, with potential to test US$5,000/oz by 2028. As for silver, GlobalData believes prices could test US$85-US$100/oz as structural deficits deepen in the solar panel and electric-vehicle sectors.

Mundada says: “The positives of this rally are profound wealth preservation and true portfolio diversification against systemic risk. The primary negative is the potential for sharp, sentiment-driven corrections and rising input costs across the technology supply chain.

“For 2026 and beyond, the focus shifts to disciplined, regulated accumulation. We are transitioning into a new, multipolar monetary era, and bullion is the asset class of choice for navigating this shift.”