MacroMavens President Stephanie Pomboy explains why she expects precious metals to continue rising on ‘Making Money’.
Gold’s stratospheric rise, its best percentage gain since 1979, surprised even the most bullish metal experts as Wall Street firms chased the run-up. The precious metal, which traded at $2,606 last December, rose more than 66% in 2025 and hit a series of new highs, reaching around the $4,325 level by year-end.
Looking ahead, companies including Bank of America see the yellow metal reaching $5,000 an ounce due to continued central bank purchases, rising deficits tied to US fiscal policy and a weaker US dollar. This caps off the worst year since 2017, with the Wall Street Journal Dollar Index down more than 6%.
“There’s still underinvestment right now, I think. And normally there’s no end in sight for the gold markets because their overbought gold markets are stalling and because the underlying drivers that started the bull market have diminished and we’re not seeing that, frankly. I think everything that I outlined earlier that made us bullish, I think is still in place now,” Bank of America strategist Michael Widner said during a metals roundtable in mid-December.
The gold price reached record highs in 2025. (iStock / iStock)
While the price target is about 14% higher than current levels, “an aggressive stance from the Fed is a risk,” Widner wrote.
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Alongside gold, silver had its own record year with a gain of over 142%, while copper rose over 41%, its biggest net and percentage gain in one year since 2009.
MacroMavens president Stephanie Pomboy, admittedly surprised by the pace of the rally in precious metals, sees more future for this year.
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The Federal Reserve cut interest rates by a quarter of a percentage point in December, the third straight cut in 2025. Officials also signaled the resumption of government bond buying.
“As outlined in a statement released today by the Federal Reserve Bank of New York, reserve management purchases will reach $40 billion in the first month and may remain elevated for several months to alleviate expected near-term pressure on money markets. After that, we expect the size of reserve management purchases to decline, although the actual pace will depend on market conditions,” Chairman Powell said at his December press conference.
