May 2025 was a month of mixed signals for precious metals after April’s record-breaking run. Gold pulled back from its highs while silver stayed stuck in the mud, but platinum surprised everyone with a strong rally. Trade talks and economic uncertainty kept investors on their toes all month long.
Gold
Gold took a breather in May after its wild April ride. Starting at $3,227.16, gold climbed to $3,417.74 on May 6 before settling at $3,295.30 by month’s end—a modest 2.1% gain that ended its four-month winning streak.
Barron’s reported that gold had its worst month since December, falling 0.5% in May. The drop happened as stocks rallied and investors took profits when trade tensions seemed to calm down.
The turning point came early when gold hit a record $3,411.40 on May 6, right when the White House said Treasury Secretary Scott Bessent would meet with China about trade. Reuters reported that gold fell nearly 1% on May 26 after President Trump backed off his threat to slap 50% tariffs on European goods, pushing the deadline to July 9.
What moved gold in May:
- U.S.-China talks happened on May 10 in Switzerland
- Trump gave the EU more time on tariffs, reducing demand for safe assets
- Stock markets rallied as trade fights seemed to ease
- Gold still stayed up 25.1% for the year, crushing the S&P 500’s 0.5% gain
Giovanni Staunovo from UBS told Reuters: “We still look for higher prices over the coming months, expecting the yellow metal to retest the level of $3,500/oz.” Citibank raised its short-term target back to $3,500 from $3,150, pointing to ongoing tariff policies and global tensions.
Even with the monthly dip, buying gold stayed popular with many investors who see the pullback as a chance to get in rather than a real trend change.
Silver
Silver had a tougher time than gold in May, starting at $32.45 and ending at $33.06 — a small 1.9% gain that left it far behind gold’s performance. The metal hit a low of $32.05 on May 2nd and peaked at $33.59 on May 23.
The gold-to-silver ratio stayed high throughout May, bouncing between 98.49 and 103.55, showing silver’s continued weakness versus gold. This wide gap suggests silver remains relatively cheap next to gold.
CBS News reported that silver prices are up about 25% from a year ago, with prices around $33 per ounce compared to just under $27 a year ago. Brett Elliott from APMEX said: “Silver is up 25% from a year ago and has room to run higher, with many analysts predicting $40 per ounce by end of year.”
But Elliott also warned that the $35 mark has been “a key resistance level” for silver, and breaking through that barrier could be tough. The article highlighted silver’s split personality as both an investment and industrial metal, with factory uses including solar panels, circuit boards, and batteries.
Steven Conners from Conners Wealth Management told CBS that silver’s future depends a lot on what the Federal Reserve does: “If the Federal Reserve bank cuts the federal funds rate, then silver may have some good appreciation.”
Platinum and Palladium
Platinum was May’s biggest winner among precious metals, starting at $977.14 and jumping to close at $1,064.91 — an impressive 9% monthly gain. The metal hit a low of $969.95 on May 5 before climbing steadily to peak at $1,102.36 on May 23.
This rally surprised many people, especially since platinum has struggled for years. The metal has been trading way below gold prices, which caught the attention of bargain hunters.
Palladium had a so-so month, starting at $980.77 and ending at $989.00, essentially flat for May. The metal peaked at $1,050.39 on May 21 but couldn’t hold those gains. Barchart noted that palladium keeps having trouble around the $1,000 level despite potential demand increases from U.S. energy policy changes.
According to the Barchart analysis, palladium might benefit from the Trump administration’s “drill-baby-drill” policies, which favor gasoline-powered vehicles and boost catalytic converter demand. However, palladium faces several headwinds:
- Low trading volume versus other precious metals (only 19,942 contracts in open interest)
- High price swings (38.35% historical volatility vs. 10.44% for gold)
- Market uncertainty about which way the auto industry is heading
Platinum’s strong May performance suggests investors are finally noticing its value at current levels, especially with gold prices so high.
What’s Next
Looking ahead to June, several things will drive precious metals prices:
- How U.S.-China trade talks go and whether tensions heat up again
- Federal Reserve policy moves that might change interest rates
- Summer driving season demand for gasoline (helping palladium)
- Whether platinum can keep climbing above $1,000
Trump’s recent comments about China “totally violating its agreement” suggest trade fights could flare up again, which would likely help gold and silver as safety plays.
Fundstrat’s Mark Newton thinks precious metals are near the end of their cooling-off period and could push to fresh records soon. He wrote: “Safe-Haven trades like Japanese Yen and Gold should be starting to turn back higher.”
The big question for investors will be watching how global trade talks develop and whether central banks keep buying gold aggressively.
Conclusion
May 2025 showed that even after gold’s amazing run, precious metals markets still react quickly to world events. Gold’s pause after hitting new records was probably healthy for the market, while platinum’s strong showing reminded investors that bargains still exist in the metals world.
With gold still up 25% for the year and silver looking relatively cheap at current ratios, there are chances for investors who can think long-term. Platinum’s breakout above $1,000 might signal renewed interest in platinum group metals.
If you’re thinking about adding precious metals to your portfolio, the current market offers different entry prices across various metals, each with their own risks and potential rewards.
Spot price data based on CMI Gold & Silver’s daily spot price feed.
