Gold, silver, platinum and palladium have all surged in 2025, with gold now trading above $US4,200/oz and silver above $US52/oz.
The metals rally isn’t just playing out on trading screens — it’s also visible in cities across Australia. Bullion dealers have reported long lines of customers looking to buy physical gold and silver, with some stores seeing demand double in recent weeks.
Why is this happening?
According to Vivek Dhar, CBA Head of Commodities and Sustainable Economics, the rally in precious metals has been driven by falling interest rates, geopolitical tensions and resilient industrial demand.
The US Federal Reserve began cutting rates in September, making non-interest-bearing assets like gold more attractive. Markets now expect nearly 100 basis points of cuts by mid-2026 — more than CBA’s forecast of 75bps by March.
“The surge in precious metals since the beginning of the year has been nothing short of spectacular”, Dhar explains.
“One key driving factor has been the shift in monetary policy that has made precious metals a more compelling alternative to bonds and the US dollar.”
“But the real catalyst was President Trump’s ‘Liberation Day’ tariffs, which triggered a sharp equity selloff and pushed investors towards metals as a safe haven.”
