Gold and silver prices shatter records as central banks fuel unprecedented demand
Gold and silver prices have soared to unprecedented levels this week. On Tuesday, global gold hit $4,620 per ounce, just below Monday’s peak of $4,631. Meanwhile, silver reached an all-time high of $90 per ounce, driven by strong industrial demand and shifting investment trends.
The surge in precious metals comes as central banks worldwide continue to stockpile gold. The People’s Bank of China extended its buying streak to 14 months through December 2025, adding 28.5 tonnes to its reserves. Brazil, Finland, and Turkey also made significant purchases in late 2025, pushing official sector demand well above historical averages.
This trend began in 2022, when central banks—led by China and Turkey—dramatically increased gold acquisitions. Annual purchases exceeded 1,000 tonnes each year from 2022 to 2024, far surpassing the 200-600 tonnes bought annually in prior years. Analysts link this shift to the freezing of Russian central bank reserves in Western currencies in February 2022, prompting a move away from US Treasuries toward physical gold. State Street experts noted a permanent change in reserve management strategies, while Deutsche Bank analysts observed that high prices have not deterred gold accumulation. The appetite for gold remains strong among reserve managers, even as prices climb. Silver’s record rise reflects growing industrial demand, particularly from AI data centres, renewable energy projects, and high-tech manufacturing. In Vietnam, local prices followed the global trend, with silver hitting VNĐ89.9-92.7 million ($3,458-3,556) per kilogramme and gold reaching VNĐ160.9-162.9 million ($6,188-6,265) per tael in Hà Nội. The precious metals rally also coincides with softer US inflation data. December 2025’s core CPI rose just 0.2 per cent, below the 0.3 per cent forecast. This has fuelled expectations of Federal Reserve rate cuts in 2026, further supporting metal prices.
Gold and silver have both broken records, with gold nearing $4,631 per ounce and silver hitting $90. Central banks continue to drive demand, while industrial uses push silver higher. The combination of geopolitical shifts, inflation trends, and rate cut expectations has reinforced the upward momentum in precious metals.
