Outside of the U.S., purchasing trends are still expected to remain positive for gold going forward, providing further support. In its Q3 Gold Demands Trends report, the World Gold Council pointed to the strongest increase in Q3 gold demand since its series began, with total demand exceeding $100bn for the first time. The report, which pre-dated the U.S. election result, showed demand from investors more than doubled year-on-year, driven by the need for portfolio protection and diversification in the face of ongoing economic and geopolitical uncertainty, an outlook that is not likely to change. Demand was particularly strong among ETFs and western investors. Although central bank buying eased somewhat, it remained robust and in line with the same period of 2022. 

At the same time, the artificial intelligence boom continued to drive demand for gold for use in technology. The only fall recorded was in demand for jewelry, which dropped 12% by volume due to the high price of gold, although high prices meant demand by value was actually up by 13%. Overall, total global gold demand increased 5% year-on-year to 1,313t in the third quarter.

Silver, which had been enjoying a strong rally driven by a combination of rising industrial demand and supply constraints, also suffered a price dip in the aftermath of the U.S. election. The price of silver, which is both an industrial and a precious metal, has increased by 33% since the start of 2025. Although its path has been choppier than gold’s, its October high was within touching distance of prices not seen for more than a decade.

Silver is benefiting from strong demand from the industry. In particular, growth in the electric vehicle sector, which uses silver in batteries and charging infrastructure. High demand for EVs is expected to be a significant driver for the silver price going forward. Meanwhile, supply-side constraints could also help to push prices higher, with the amount of silver mined in 2024 estimated to be marginally lower than the previous year, according to the Silver Institute.

The metal also faces some headwinds. Like gold, silver typically has an inverse correlation with the U.S. dollar. As a result, the recent strength of the dollar could continue to put downward pressure on price gains, at least in the short term. Over the longer term, its outlook will also be impacted by the pace of interest rate cuts. 

Meanwhile, the gold silver ratio remains at relatively high levels by historical standards. The ratio, which measures the price of an ounce of gold divided by the price of an ounce of silver, stands at almost 89 as of mid-January. Historically when the ratio has been above 80, silver has gone on to enjoy a strong rally, which could mean silver still has plenty of runaway should gold continue to perform in 2025.