Gold surged above $5,600 per ounce for the first time on record following the latest policy signals from the Federal Reserve, triggering another wave of buying across precious metals markets. The move extended gold’s already historic rally and reinforced its status as one of the strongest-performing assets of the year.
Silver followed with even greater momentum. Prices climbed above $120 per ounce for the first time ever, capping a dramatic surge that has reshaped relative performance across asset classes. Over the past month alone, silver has gained roughly 68%, drawing intense attention from traders and institutional investors alike.
The sharp moves came immediately after the Fed’s comments, which markets interpreted as supportive of looser financial conditions and continued currency pressure.
Supercharged metals
Investors reacted swiftly to the Fed’s tone, which reinforced expectations that policymakers are willing to tolerate softer financial conditions to support growth. As previously covered, precious metals tend to benefit when real yields fall and confidence in fiat currencies weakens.
Gold’s rally reflects its role as a monetary hedge in an environment of elevated debt, policy uncertainty, and declining trust in cash holdings. The break above $5,600 marked a psychological milestone, triggering momentum-driven buying and fresh inflows from both institutional and retail investors.
Silver’s outsized gains highlight its dual role as both a monetary and industrial metal. Strong demand, thin liquidity, and speculative positioning amplified the move, turning silver into one of the most volatile and profitable trades in global markets over the past month.
What the performance means for investors
The scale of silver’s rally is particularly striking in comparative terms. In just 29 days, silver has delivered returns roughly four times greater than the total gain of the S&P 500 over all of 2025, underscoring a dramatic shift in relative asset performance.
For investors, the surge signals a decisive rotation away from traditional equity benchmarks and toward real assets. Precious metals are no longer acting as defensive hedges alone but are increasingly driving portfolio returns in their own right.
At the same time, the speed of the gains introduces significant volatility risks. Analysts caution that crowded positioning and rapid price appreciation could lead to sharp pullbacks, even as long-term fundamentals remain supportive.
Looking ahead, markets will continue to focus on central bank guidance, currency movements, and liquidity conditions. If policy expectations remain favorable, gold and silver could retain their momentum but the extreme nature of recent moves suggests that price swings may remain intense.