Increasing demand from Central Banks

Central bank demand for gold in 2024 exceeded 1,000 tonnes, and the World Gold Council expects this trend to continue in 2025, potentially surpassing the same level. This sustained demand is likely to support gold prices, reinforcing a bullish outlook for the metal. Silver, in contrast, is expected to remain more volatile due to its dual role as both a precious and industrial metal. Strong industrial demand, particularly from emerging economies, could drive silver’s long-term performance, potentially allowing it to outperform gold over time. China plays a crucial role in silver’s trajectory. If its policies and stimulus measures successfully boost domestic consumption and economic growth, silver prices may benefit. However, an escalation in trade tensions or a slowdown in China’s recovery could negatively impact silver demand, adding uncertainty to the market.