Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold’s surge has shown no indication of slowing, even more than a year into the rally. Following a stellar 27% jump in 2024, the yellow metal has climbed more than 11% thus far in 2025. Although conventional wisdom might suggest a breather is around the corner, Sachin Patel, CME Group’s Executive Director of Metals Products says this “spectacular bull run” still has room to run.
Bright Horizons
In what Patel describes as an “extremely supportive environment for gold,” the yellow metal is heading for greener pastures even at all-time highs. The following three drivers are poised to thrust gold prices to new records, putting a series of exclamation marks on an already historic boom.
Global Instability
Global instability, ignited by entrenched wars in the Middle East and Eastern Europe, has been a major boon to gold prices as investors grow wary of traditional markets. This uncertainty has been exacerbated by a foundational shift in the global economic order as the US retreats from a century-long role as hegemon and the world hurdles toward a fractured future.
Central Bank Demand
CME Group underscores central bank accumulation as a key pillar of gold’s ongoing strength. 2024 marked the third year in a row national demand exceeded 1,000 metric tons with 1,045 added to official reserves that year. As Patel notes, emerging markets “particularly…China [and] India” have propped up this booming consumption and the resulting price increase.
Policy Uncertainty
Trump’s unpredictable and off-the-cuff approach has advantages, but that eccentric governing style has serious economic consequences. Unclear and rapidly shifting policies, notably in his tariff policy, promote widespread uncertainty. This discomfort manifests in lower consumer confidence, hesitant hiring among businesses, and market volatility—all of which boost gold’s appeal and value.
Potential Clouds
After making the case for a bright gold outlook, Patel carefully qualifies CME Group’s bullishness by recognizing potential clouds that may rain on the yellow metal’s booming parade.
Stronger Dollar — The US dollar has flexed its value throughout Trump’s economic shakeup, potentially pulling investors away from gold and toward dollar-backed assets. However, as CME Group analysts highlight, gold has defied its usual inverse relationship with the dollar by rising despite a booming currency. If this new trend remains, the yellow metal might face little resistance from a robust USD.
Slower Rate Cuts—In the face of persistent inflation, the Federal Reserve has slowed its rate-cutting strategy. Low interest rates are generally positive for gold because the opportunity cost of owning safe-haven assets decreases as the returns on conventional investments diminish. However, according to Patel, an economic climate warped by unchecked spending and skyrocketing national debt might override this speed bump on gold’s ride to new levels.
Is the Shiny Metal a Dark Horse?
Gold has been the star of the precious metals rally, but silver could outpace its counterpart in raw returns. In 2024, the shiny metal was on track to post higher gains before a sharp correction later in the year. Both metals achieved one of the strongest Januarys in recent memory, although silver bested gold by over 2%.
Silver’s bullish horizons are attributed to a widening supply-demand gap. The market is set to suffer a massive supply deficit and a strong boom in industrial demand, pressuring prices to the upside. The gold-to-silver ratio, which currently sits near record highs, suggests silver is undervalued compared to gold, further indicating potential gains.