In 2025, the bullish trend in global financial markets was evident, with gold, silver, and the US stock market all surging. Precious metals, in particular, delivered their best annual performance in decades, attracting a large influx of funds to chase higher prices. However, as 2026 begins, concerns about an overheated asset market are starting to emerge.
In response, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, warned on the X platform on January 2 that gold, silver, most metals, and US stocks are showing signs of "overshooting." He pointed out that a key reason for the pullback in Bitcoin and crude oil in 2025 was the excessive surge in their previous prices, and that many assets are currently exhibiting similar price structures.
McGlone emphasizes that rapid price increases are usually supported by fundamentals, but rapid price increases often stimulate increased supply and suppress demand, ultimately leading to a reversal of the price trend.
2025: Precious metals to experience an "explosive" market rally.
Looking back at 2025, precious metals can be considered the biggest winner in the market. Gold rose by about 65% throughout the year, climbing from about $2,600 per ounce at the beginning of the year to around $4,310 at the end of the year, repeatedly setting new historical highs and marking the largest annual increase since 1979.
Factors driving up gold prices include increased geopolitical uncertainty, the US Federal Reserve entering a rate-cutting cycle, a weaker dollar, and central banks around the world continuing to increase their gold holdings and diversify their foreign exchange reserves.
Silver outperformed even more, rising approximately 144% for the year, with a year-end price of around $72 per ounce, also marking its best annual performance since 1979. In addition to safe-haven demand, silver also benefited from rapid growth in industrial applications, including expanding demand in sectors such as solar panels, electric vehicles, and electronic products, further driving up prices.
US stocks continued to rise, but the momentum was relatively moderate.
In contrast to the strong performance of precious metals, the US stock market appears more robust in 2025. The S&P 500 index rose by about 16% to 17% throughout the year, closing at about 6,845 points, marking the third consecutive year of double-digit gains, mainly driven by technology stocks and artificial intelligence (AI) related companies.
The Dow Jones Industrial Average rose about 13% for the year, closing at approximately 48,063 points; the Nasdaq Composite rose between 19% and 20%, with the gains particularly driven by technology stocks. Corporate profit growth and market expectations of interest rate cuts provided support for the stock market, but its appeal remained somewhat less than that of precious metals.
