Gold and silver have seen strong gains as trading kicked off for the new year. Despite a higher dollar, both metals saw prices rise in USD, while other currencies saw additional gains.
The opening day of trading in 2025 was a great start for gold, which increased by 1.9% yesterday in USD. This came despite the US Dollar Index hitting a two-year high, and spoke to strong buying appetite for the precious metal as another potentially volatile year begins.
The strength of the dollar pushed other currencies lower, and resulted in impressive gains for both the Pound and Euro. In GBP gold gained more than 3.3% for the day, and came close to the UK record, peaking at £2,151.87 per ounce. In Euros, gold jumped 3.4%, also peaking just shy of the Euro high at €2,597.49.
Gold has seen some expected pull back today. Having jumped so high, so quickly on the opening day of trading, some selling is not surprising. The gains represent a good start to the year for gold though and after last year’s performance, could be an early sign of things to come in 2025.
Silver’s success was slower than gold, but today has proven better for the alternative metal, increasing compared to gold’s pullback. Silver is up 3.4% in USD and is closing in on $30 once more. As with gold, the stronger dollar helped silver realise even greater gains in other currencies.
There is plenty of volatility on the horizon with both economic and geopolitical factors for investors to weigh up, and looking back on 2024, the start of the year was certainly the right time to buy. This seems to have been the mentality of markets for the past two days, with buying impressively overriding the strength of the dollar.
