Silver may outshine gold in H2 2025; oil to remain volatile: Analysts

Gold, silver prices outlook 2025: While analysts suggest investors, looking to buy gold, to stay on the sidelines, they advise investors to buy silver on dips

Silver may outshine gold in H2 2025; oil to remain volatile: Analysts

 

Gold, Silver prices outlook 2025: Escalating geopolitical tensions between Iran and Israel, worries over global growth on the back of the US’ looming reciprocal tariffs, and friction between the US and China made gold and silver the best asset classes in the first half of calendar year 2025 (H1 CY25). While gold has outperformed silver in the first half, analysts see the latter outshining gold in the remaining part of CY-2025.

 

Thus far in 2025, silver prices have rallied 24.5 per cent in the global markets driven by their safe-haven trait, coupled with growing demand from industries like clean energy, consumer electronics, and jewellery. The white metal, back home, has gained 22.09 per cent on the multi-commodity exchange (MCX).

 

 

Gold prices, meanwhile, have soared 25.3 per cent globally and 25.6 per cent domestically as investors hedged against risks from a slowing world economy. Besides, increased buying by central banks, too, pushed prices higher.

 

"Besides growth worries, a fall in Dollar index, US Federal Reserve chair Jerome Powell expecting higher inflation ahead, fluctuations in US Treasuries and USD-INR rates, increased the risk premium for Gold and Silver in 2025," said Navneet Damani, senior group vice president and head of research at Motilal Oswal Financial Services.

 

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Gold, Silver price forecast 2025

 

Going ahead, Mohammed Imran, research analyst for commodities at Mirae Asset Sharekhan, expects silver to outshine gold in the second half of CY25 amid rising industrial demand (pegged at 3 per cent in 2025, reaching 680.5 million ounces), supply deficit (117.7-million-ounce in 2025), and limited rate cuts by the US Fed.

 

He sees Silver hitting $40-$42 by the end of CY 2025 with a potential rally towards $50 in 2026. For Gold, Imran anticipates some profit booking in the near-term with prices testing the support at $3,200-$3,185, before rallying towards $3,600-$3,800 in H2CY25.

 

Tailwinds like a possible trade war, contraction in the global GDP, higher inflation in the US, geopolitical worries, US Debt/GDP ratio running at 126 per cent, Moody's downgrading the US credit rating, a decline in demand for US Treasuries by China, and aggressive Gold buying by central banks will support the prices of the yellow metal at lower levels.

 

Navneet Damani of Motilal Oswal, too, advises investors in gold to stay cautious at current levels. While he has a medium-to-long term target of ₹102,000 for Gold, he suggests investors wait on the sidelines for a clear direction. "For Silver, investors can maintain a ‘buy on dips’ strategy with targets of ₹111,000 and ₹115,000," he said.

 

Crude oil price outlook 2025

 

As for crude oil, the commodity prices remained largely volatile H1 CY25. While production hikes from Opec and its allies kept prices under check for most part of the year, rising trade tensions between the US and China, and the recent war between Iran and Israel, sent prices to five-month highs this week. Overall, however, Brent crude has declined 9.27 per cent so far in calendar year 2025.

 

"The oil market is expected to remain influenced by the complex interplay, leading to potential price volatility, with average prices projected around $70 (WTI). Significant uncertainty persists, as any geopolitical escalation could reintroduce oil supply risks, and the status of trade negotiations and sanctions on key oil-producing nations like Russia, Iran, and Venezuela could further impact global trade flows and prices," Damani said.

 

Jashan Arora, director at Master Trust Group, meanwhile, suggests investors looking to take exposure to these assets should adopt a balanced strategy which involves gold for safety, silver for potential growth, and oil to benefit from global economic trends.