Gold and Silver rally over 50% in 2025: Here is what charts indicate after a relentless rally

Gold and silver are rocking with stellar performance in 2025, outperforming every other asset class by a wide margin. The performance is driven by a tense geopolitical environment, aggravating trade wars and a shift in stance by major central banks towards precious metals. In addition, the shortages in the physical supply of silver have led to a huge premium in prices for digital versions of the assets, like Silver ETFs.

The rally has led to a fear-of-missing-out (FOMO) emotion for many investors who missed the bus in gold and silver. Will the gold and silver prices come down or will they continue to march higher?

Gold prices have rallied over 54% in the last 12-month period and 60% in 2025. The rally was led by strong central bank buying across the globe and uncertainty towards the mounting US debt. World Gold Council’s report estimates the gold purchases by central banks could cross 1000 tonnes in 2025, marking the fourth consecutive year of purchases above 1000 tonnes. The large demand and limited supply have led to a relentless rally in gold prices.

On the technical charts, the gold price shows eight consecutive weekly gains, which is one of the highest in over a decade. The prices are currently trading 17% away from the 20-SMA levels on weekly charts, indicating stretched buying levels. Historically, gold prices have reversed towards long-term averages of 20-SMA levels after trading above 15% of the 20-SMA levels. The current weekly 20-SMA stands at $3,522 per ounce.

On the other hand, silver has outperformed gold and has gained over 83% in 2025. The sharp rally in silver has led the prices to hit record high levels after 14 years. The strong demand for silver has led to supply shortages in markets, which has boosted premiums for existing silver demand. The global surge in silver prices is primarily driven by the industrial segment, as silver holds applications across electronics, solar and electrical appliances

The silver prices have given a breakout after 14 years, indicating a new bullish momentum in the precious metal. Technically, prices reverse back to their averages after a sharp rally. Silver’s historical charts suggest the prices could go far above their long-term average of 20-SMA. On weekly charts, the prices trade 22% above the average level, indicating a far-stretched rally.