Precious metals analysts at the World Bank project an upward skew for gold’s price over the next 18 months, according to a Kitco.com report.
Meanwhile, silver and platinum are expected to extend their recent strength through 2026.
“Precious metal prices surged to record highs in the first half of 2025, building on a 20-percent increase in 2024,” Senior Economist Jeetendra Khadan and Researcher-Analyst Kaltrina Temaj at the World Bank’s Prospects Group were quoted in the Kitco report.
The rally was led by gold, which approached all-time highs in mid-June amid escalating geopolitical tensions and elevated economic uncertainty.
Silver and platinum prices also saw significant increases, with expectations of continued high prices through 2025 and 2026.
Source: Kitco
Gold
Gold rose nearly 25% in the first half of 2025, the analysts noted.
Recent price increases have been driven by strong demand amid elevated policy uncertainty and intensifying geopolitical tensions. A sharp resurgence in gold exchange-traded funds (ETFs) inflows in the first quarter of 2025 pushed investment demand to its highest level since 2022. Central bank purchases continued to provide support, reflecting reserve-management strategies.
Elevated global uncertainty and geopolitical risks are expected to sustain strong demand in the near term, according to the analysts.
“Gold prices are projected to rise by about 35 percent in 2025 (y/y), before easing modestly in 2026 as some of the prevailing uncertainties begin to recede,” they said.
Prices are anticipated to stay significantly elevated, about 150 percent higher than the 2015–19 average, until 2025–26, according to the report. The outlook carries upward risks, largely due to ongoing geopolitical uncertainties.
Silver
Silver sustained its robust 2024 performance, surging by almost 20% in the initial half of 2025.
Despite these significant silver price increases, analysts observed that “the gold-to-silver price ratio continued its consistent upward trajectory, moving further above its 10-year average in early 2025.”
“This partly reflects stronger relative demand for gold as a safe-haven asset amid heightened uncertainty and geopolitical tensions,” the analysts said.
The World Bank anticipates sustained strong demand for silver, driven by its dual function as an industrial component and a safe-haven investment.
Source: Kitco
“Heightened economic and geopolitical uncertainty could further bolster silver’s appeal among investors,” the analysts said.
Global silver output is forecast to grow steadily in 2025, primarily due to increased mine production.
While recycling, which contributes roughly 20% of the global supply, saw a 6% rise in 2024, it is anticipated to remain stable.
Overall, robust demand is expected to drive a 17% year-on-year increase in silver prices in 2025, with an additional 3% gain projected for 2026.
Platinum
Platinum joined the rally of precious metals, with its prices surging by almost 30% in the first half of 2025, reaching a decade-high.
“The rally has been largely driven by tightening supply, with mine production projected to decline and reach a five-year low this year,” World Bank analysts noted.
“Modest gains in recycling are expected to only partly offset the shortfall, while aboveground stocks are set to decline sharply.”
Significant declines in global platinum use are anticipated due to decreased demand from the automotive and industrial sectors, which collectively represent almost two-thirds of total platinum consumption.
Source: Kitco
“Despite subdued demand overall, supply constraints are expected to support prices, with a 10 percent rise projected in 2025 (y/y) and a further 2 percent gain in 2026,” the analysts said.
Gold prices are predicted by the World Bank to achieve their highest annual average on record.
Demand for silver is expected to remain strong, leading to a further increase in prices. Meanwhile, tight supply conditions are set to continue supporting platinum prices, according to the bank.
However, a further escalation in global tensions could lift gold prices above current projections, whereas weaker-than-expected industrial activity may dampen demand and drag silver and platinum prices below current forecasts.
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