May 2025 - Precious Metal Market News

What You'll Discover In This Month's Precious Metal Roundup

• A surprising shift in where the world’s gold is being stored.
• A powerful rally in one metal that’s turning heads across the investment world.
• What a major central bank decision and a bold political move in the US could mean for your portfolio.
• The latest from a high-stakes geopolitical standoff and a dramatic shift in UK defence strategy.

Gold Market Insights

The price of gold in May experienced notable fluctuations.

In the first week of the month, gold was priced at £2,575 (GBP) before falling to a low of £2,359 by 15th May. In the latter half of the month, the price rebounded, trending upwards and reaching highs just below £2,500. Gold followed a similar pattern in USD, dipping during the middle of the month, before recovering towards the end.

Figure 1 – Price of Gold (£) in May

What Were the Major Events That Impacted Gold?

Unsurprisingly, President Trump was at the centre of much uncertainty. He announced 100% tariffs on non-American films and issued a warning that US tariffs on steel and aluminium imports would double to 50% starting Wednesday, 4th June. In a highly publicised moment during the Russo-Ukrainian War, Trump and the US finalised a mineral deal with Ukraine.

To help stabilise declining global markets, Trump and Chinese President Xi Jinping reached an agreement in May to reduce tariffs imposed on each other by an extraordinary 110% for 90 days. However, many economic analysts believe this is far from the end of the trade war, with few holding their breath. Following the agreement, gold prices dipped by around 3%, with US tariffs on Chinese goods standing at 30%, and Chinese tariffs on US imports at 10%.

In addition, The London Bullion Market Association (LBMA) stated on Thursday 8th May, that 8,536 metric tons was stored in London Vaults by the end of April. They revealed that this was up 0.6% from the previous month, with large imports moving away from New York back to London.

Key Takeaway:  The return of gold to London vaults signals improving liquidity and confidence in the market, while geopolitical uncertainty continues to influence short-term price movements.

Silver Market Insights

Silver prices remained relatively stable throughout May in both GBP and USD.

Figure 2 – Price of Silver (£) in May

However, as of Tuesday, 3rd June, silver has risen by 4.4% in GBP and 4.1% in USD over the past two days. CBS News claimed that 'silver is up 25% from a year ago and has room to run higher'. (See Source)

Many analysts, including Brett Elliot, Director of Content Marketing at APMEX, believe silver could reach $40 by year-end. Since October 2024, it has struggled to break above $35 per ounce, but with prices now hovering around $34, June 2025 may see a breakthrough.

The LBMA also reported that 22,859 tonnes of silver were held in London vaults in April, up 3.3% from March. This marks the first monthly increase in silver holdings since October 2024. Investors are now patiently awaiting the next Fed meeting on 18th June 2025, which could either support the recent surge or potentially hinder it.

Let us know what you think.

Key Takeaway: Silver’s dual role as an industrial and investment metal makes it sensitive to both economic optimism and inflationary concerns.

Platinum Market Insights

Over the past month, platinum has recorded significant gains. In GBP, platinum rose by 8.7%, and in USD, it climbed by 10.9%, once again surpassing the $1,000 per ounce mark.

Figure 2 – Price of Platinum (£) in May

What Were the Major Events That Impacted Platinum?

On Friday, 23rd May, platinum prices climbed to their highest level in two years, driven by a combination of factors. Including sharp rises in Chinese imports, supply concerns, and renewed investor interest in the metal used in catalytic converters, jewellery and electronic items.

Key Takeaway: During London Platinum Week, discussions were focused on supply constraints, automotive demand, and green hydrogen applications.

Geopolitical Developments

Russia-Ukraine Peace Talks Stall

The second round of direct peace negotiations concluded without any significant progress. While Ukraine’s call for an immediate and unconditional ceasefire was turned down by Russia, both parties did agree to exchange prisoners and bodies of fallen soldiers.

UK Strategic Defence Review

Prime Minister Keir Starmer launched the UK’s Strategic Defence Review, calling for the country to be “warfare-ready” and increasing defence spending to 3% of GDP (£13+ billion).

Investor Takeaway: Rising geopolitical tensions and military posturing in Europe may increase investor demand for precious metals.

Macro Events Impacting Precious Metals

Bank of England Rate Cut

The Bank of England reduced its base rate to 4.25%. Lower interest rates typically support precious metals by reducing the opportunity cost of holding them.

Pound Sterling Nears Three-Year High

The British pound surged 0.7% against the US dollar, reaching $1.356 its highest level in nearly three years. Goldman Sachs suggests Trump’s tariff announcement may be contributing to US dollar weakness and stock market declines.

Conclusion: What to Watch in June

Stay tuned for our June update, and subscribe to our mailing list to receive timely insights into the world of precious metals.

• Will gold regain momentum if geopolitical tensions escalate?
• Can silver sustain its rally amid industrial optimism?
• Will platinum continue to outperform as clean energy demand grows?
• How will central bank policies and trade tensions shape the metals landscape?