After previously rising towards its all-time high of just over $3,500 per ounce, the gold price is significantly declining again this week and has only marginally advanced in the last five days. According to observers, the trigger for the setback is the conclusion of a trade agreement between the US and Japan, which – along with some other such deals – reduced fears of a global trade war and thus caused demand for safe-haven gold to decline.
In the short term, experts believe this could cause the price of the yellow metal to continue moving sideways with significant fluctuations for now. In the long term, however, many observers believe the outlook for the gold price remains positive, as rising concerns about increasing US debt could strengthen the trend towards “de-dollarization”. This would mean that central banks’ gold reserves would continue to rise.
So far in 2025, the gold price has risen by approx. 28%, primarily due to the disruptions caused by US President Trump’s trade policies, leading both investors and central banks to acquire the precious metal. Thus, the gold price reached an all-time high of just over $3,500 per ounce before entering a sideways range.
Silver Holds up Better than Gold
Meanwhile, however, the silver price has outperformed its “big brother” and is well ahead since the beginning of the year. Even though it also saw a slight decline, the $39 per ounce mark has held so far.
The better relative performance is also due to the fact that a large part of the demand for silver comes from industry. So, if the precious metal is not in demand or less in demand as a safe haven, forecasts of growing demand from sectors such as the solar industry could still lead to silver continuing to rise.
Experts also consider a sustained rise in the silver price above the $40 per ounce mark possible, should the gold price recover, the US dollar continue to weaken, or signs of an increasing supply deficit emerge. Recently, for example, according to reports, silver was scarce in London, after, according to Bloomberg, almost half a million ounces were moved to warehouses in the US, out of fear that US President Trump might impose import tariffs on the yellow metal.
