Precious Metals Cash In on Record Run, Stocks Bask in Year-End Glow

On Wednesday, investors took advantage of a good year for precious metals in 2025 by taking profits on their gold, silver, platinum etc., which led to a sell-off in the precious metals market. At the same time, global equity markets are continuing to consolidate after having their best year of performance since before COVID-19.

Most global markets were "autopilot" this week as they finished the calendar year after a very volatile year of geopolitical tensions, large swings in the U.S. Dollar, uncertainty in bond markets, and an ongoing buying spree of many AI-related stocks. But metals told a different story.

Silver prices in London fell nearly 6% following a staggering 150% rally this year. Gold, which posted its best year since the 1979 oil crisis, dipped 1%, while platinum dropped 8%, softening the shine on its 120% 2025 gain. European equities were largely steady, hovering near record highs after a tumultuous but lucrative year that saw even the region’s banking and defense sectors outperform the renowned ‘Mag 7.’

MSCI’s broadest index of global stocks (.MIWD00000PUS) was flat after a $15 trillion rally in 2025, as investors digested the Federal Reserve’s December meeting minutes, which highlighted ongoing policy divisions over U.S. interest rates. The index is set to finish the year with a 21% gain its largest rise since 2019 driven largely by surging chipmakers amid the AI boom.

“Despite a few shocks, 2025 has been excellent for investment returns,” said Kyle Rodda, senior financial analyst at Capital.com. “The gains are concentrated, but the combination of AI momentum and supportive monetary and fiscal policies drove assets to record levels.”

In currency markets, the U.S. dollar inched higher but is still set for a 9.4% annual drop, its largest since 2017, giving the euro and most other currencies significant gains. Looking ahead, investor attention will remain on the Fed’s interest rate moves, particularly as President Donald Trump teased the announcement of a new central bank chairperson.

The performance of commodities varied widely; Brent crude oil is below $61 per barrel today, and it has fallen by more than 17% so far this year as well as in each of the last 2 years because of oversupply, tariff restrictions on energy, and uncertainty regarding the potential effect of U.S. sanctions on major oil producers. RPC forecasts that China's GDP will grow at a minimum of 5% for 2026, while at the same time presenting more aggressive governmental policies to support the economy.

Futures suggestions for Wall Street are pointing to a down day for Thursday, December 31, 2017. However, the three major indexes, S&P 500, Dow Jones and Nasdaq, are still expected to finish the year strong, due in large to artificial intelligence stocks experiencing multiple all-time highs. Even though these increases in dollar value may not be as large compared to international currencies, the many total return percentages from 2017 have been much greater than some international markets (YTD). For example, the European STOXX 600 Index has increased 37%, Japan’s Nikkei Index is up 30% and South Korea’s KOSPI has increased approximately 100%.