What's Next For Precious Metals

So far, 2025 has been a year where Precious Metals have been very much in focus.  

GOLD 

As it usually does, Gold took the lead in the broad precious metals rally, making new All-Time Highs and showing great strength. Gold's solid and continuous rally was driven primarily by: 

• Central bank buying (primarily China and India), which has been relentless throughout the past year or so.  

• Safe-haven demand driven by several reasons such as the US Tariffs, ongoing conflicts and generally heightened global tensions. 

• Increasing global debt which, unless somehow deficits get reduced, will keep growing at record pace and reduce the purchasing power of fiat currencies. 

• Retail investor interest, which has been increasing but still well below long-term averages. 

Looking at Gold's daily chart, we can see that it's been rallying non-stop since its technical breakout in 2024. The macro factors that have contributed to Gold's rally are still there, and this implies a continued rise in price; however, nothing goes in a straight line and Gold will eventually see a pullback. 

We are currently consolidating in a sideways wedge, and Gold will have to make an important decision pricewise. There is support confluence at around the $3270-$3285 area, below which the door opens for $3151. An extremely bearish scenario (perhaps inflation spiking or a general market crash) could take gold down towards the $2934 fib retracement. If we got down to those levels, it would probably be an exceptionally good opportunity to buy the dip. 

On the flipside, if the resistance trendline is breached at around $3390-$3400, then the road clears for new all-time highs above $3500. 

SILVER 

Silver is a monetary asset like gold, but it also has extensive industrial use. For this reason, silver tends to react more to global geopolitical and economic news. Silver has underperformed gold for the past 15 years, with the Gold/Silver ratio rising from around 30 in mid-2011, to above 100 (beyond 126 in the 2020 Covid crisis and 105 in April 2025).  History has shown that Gold leads and Silver follows, so this ratio should eventually reverse lower towards the 70s and perhaps even below.  

Silver is used extensively in industry including electronics, photovoltaics, medicine, cars, photography, the military and many others. The global push towards EVs and green energy is requiring larger and larger quantities of physical silver, and this has brought a structural supply deficit for the past few years. 

Barring a major global crisis, we should see silver outperform gold in the next months and the Gold/Silver ratio move down to test the 74-75 lows. 

In the daily chart, we can see that silver is moving within an ascending channel, having taken out the previous highs at $35. The next resistance is at the channel resistance which comes at around $38.50. On the other hand, a reversal lower could drive silver towards the $31.5-$32 area. 

PLATINUM 

While most precious metals analysts and investors focus on Gold and Silver, Platinum could potentially yield an even better trading opportunity. 

Platinum is roughly 15-20 times less abundant than gold in terms of mined output, and this makes it much rarer. In the first half of the 2000s the Platinum/Gold ratio was at around 2, but it quickly fell to 1 after the 2008 crisis. Platinum's main industrial use is in catalytic converters, and the gradual transition from internal combustion engine vehicles to EVs has caused platinum price to plummet during the past decade. The Platinum/Gold ratio bottomed at 0.275 in April 2025, and it has bounced back during the past month. 

Government data and surveys are showing that electric vehicle adoption rates have been dropping, and this is very positive for platinum. While markets seem to be convinced that within the next decade almost all cars will be electric, I strongly disagree with that view. I think that internal combustion engines will be around for a lot longer and in large numbers, before they eventually get phased out. For this reason, I think that platinum potentially offers the most upside of all three precious metals. 

Looking at the daily chart, we can see that platinum had been coiling within a wedge since early 2022, with a violent breakout coming in May 2025. At the time of writing platinum is trading at $1208 and is within reach of the $1223 fib level and the previous highs at $1339. On the flip side, a general risk-off move will likely pull platinum lower and we have confluence of supports at around the $1130-$1140 area. 

SUMMARY

To sum up, I think that all three precious metals should continue to see strength in 2025 and 2026, but their recent surge higher has taken them close to resistance levels and a pullback is overdue. If and when such a pullback materializes, it should be met with buying forces as demand for physical intensifies. Platinum could provide the best upside potential followed by Silver, but high returns are often coupled with high volatility – so traders should be prepared for that and control risk accordingly.

Thank you for reading and trade safe.

Featured image generated with AI assistance