Precious metals continued their historic rally on Tuesday, with gold climbing to $5,181 per ounce and silver surging to $90.75 as investors seek safe-haven assets amid persistent inflation concerns and global economic uncertainty.
Gold Reaches New Heights
Gold traded at $5,181 per ounce as of 7:05 a.m. Eastern Time on February 25, 2026, representing a stunning 77.67% gain over the past 12 months. The yellow metal has appreciated by $2,265 per ounce compared to its price of $2,916 just one year ago.
The latest move marks a 1.17% increase from Monday's close of $5,121 and continues a trend that has seen gold surge more than 25% since the beginning of 2025.
Central bank demand remains a key driver of the rally. According to market data, the People's Bank of China has extended its gold purchases for the 15th consecutive month in January, providing steady institutional support for prices.
Silver Outpaces Gold With 186% Annual Gain
Silver has outperformed its precious metal counterpart, trading at $90.75 per ounce on Tuesday morning. The white metal posted a remarkable 185.91% gain over the past year, rising from $31.74 per ounce in February 2025.
The day's trading showed silver up $2.88, or 3.27%, from Monday's price of $87.87 per ounce.
However, silver's path has been volatile. The metal remains approximately 30% below its late January peak following a selloff that briefly erased nearly half its value. Treasury Secretary Scott Bessent attributed the extreme price swings to speculative activity, particularly from Chinese traders.
Dollar Weakness Fuels Precious Metals
A weakening U.S. dollar has provided additional support for precious metals. The greenback has come under pressure amid concerns that foreign investors may shy away from dollar-denominated assets following recent trade policy uncertainty.
Despite elevated prices, the World Gold Council expects investment interest in gold to remain strong, driven by ongoing geopolitical tensions, expectations of interest rate cuts, and continued pressure on the U.S. dollar.
Interest Rate Outlook
The Federal Reserve appears poised to hold rates steady in the near term. According to CME Group data, 98% of market participants expect interest rates to remain unchanged at 3.50% to 3.75% at the March meeting, with only a 2% probability of a cut to 3.25% to 3.50%.
Market analysts expect gold to trade within a range of $4,915 to $5,719 through the end of February.
Investment Considerations
For investors considering precious metals exposure, financial advisors typically recommend allocating no more than 10% to 15% of a portfolio to silver specifically, with total precious metals holdings kept under 20%.
While gold has historically underperformed stocks—averaging 7.9% annual returns compared to 10.7% for equities from 1971 to 2024—both metals serve as valuable hedges during periods of economic volatility and rising inflation.
Silver's dual role as both an investment vehicle and an industrial metal, used in solar equipment and healthcare devices, positions it to benefit from increased manufacturing demand alongside investment flows.
Sources: Fortune, World Gold Council, CME Group, Trading Economics