Gold and silver prices experienced a volatile end to a year that saw them on track for their largest annual gains since 1979. Gold prices surged by more than 60% this year, reaching a record high of over £4,549 ($3,378) an ounce before falling to approximately £4,330 on New Year's Eve. Silver traded at about £71 an ounce after hitting an all-time high of £83.62 on Monday.

Several factors drove this year's gains, including expectations of future interest rate cuts. However, experts cautioned that the sharp increases observed throughout the year could lead to a price drop for both gold and silver in 2026.

Rania Gule, from trading platform XS.com, stated that "Gold and silver prices are experiencing a notable rise due to the interplay of several economic, investment, and geopolitical factors." She identified the expectation that the U.S. Federal Reserve would cut interest rates again in 2026 as the primary driver of these price increases.

Central bank gold purchases and investor acquisition of "safe haven" assets, fueled by concerns about geopolitical instability, also contributed to the price surge. These factors often lead investors to precious metals as a hedge against economic uncertainty.

The performance of gold and silver is closely watched as an indicator of broader economic trends. Their rise often reflects investor anxiety about inflation, currency devaluation, or global instability. The potential for a price correction in 2026 highlights the inherent volatility of these markets and the importance of careful risk assessment for investors. The coming year will be crucial in determining whether the factors that drove prices up in 2024 will continue to hold sway or whether new economic forces will lead to a market correction.