Precious Metals ETFs Go Parabolic As Investors Rush For Safety

Precious metal prices extended their stunning rally into record territory as investors continued to seek refuge in the sector.

Gold jumped as much as 2.5% to a record above $5,100 an ounce, while silver surged nearly 14% on the day to almost $118. Platinum prices climbed as much as 5.2% to more than $2,900, also an all-time high, while palladium rose 7.5% to $2,170, its highest level since October 2022.



The moves have translated into massive gains for precious metals ETFs. The SPDR Gold MiniShares Trust (GLDM) and abrdn Physical Silver Shares ETF (SIVR) are up roughly 18% and 60%, respectively, already this year, following gains of 64% and 145% in 2025. 

Meanwhile, the abrdn Physical Platinum Shares ETF (PPLT) and abrdn Physical Palladium Shares ETF (PALL) have gained 37% and 32% this year after surging 125% and 74%, respectively, last year.

Precious metals have been propelled higher by a potent mix of macroeconomic and geopolitical concerns, including ballooning government debt, escalating global conflicts, trade tensions, persistently elevated inflation, and growing questions about the Federal Reserve’s independence.

A week ago, President Trump threatened new tariffs on Europe related to the Greenland dispute. A few days ago, he warned Canada of potential tariffs if it moves forward with a trade deal with China. Meanwhile, unrest in the U.S., including a fatal confrontation involving ICE in Minneapolis, appeared to add to broader market unease.

Investor flows underscore the stampede into precious metals. After global gold ETFs pulled in $89 billion in 2025, investors have already added another $4.1 billion so far this year. 

Beyond retail and institutional investors, gold has also been benefiting from sustained demand from central banks, which have been increasing allocations as a way to diversify foreign exchange reserves. By some estimates, gold has now surpassed, or is on the verge of surpassing, the U.S. dollar as the largest component of global central bank reserves.

The weakening dollar has added further fuel to the rally. The greenback is down about 1.4% this year after falling 9.4% in 2025 and is hovering near its mid-2025 lows following earlier tariff-related shocks that dented confidence in U.S. financial assets.

Taken together, the backdrop resembles a near-perfect storm for precious metals. Still, with prices already up sharply—the price of gold has doubled since the start of 2025, while silver has nearly quadrupled—the obvious question is how much further the rally can run.



Platinum and palladium, which are typically viewed more as industrial than monetary metals, have also skyrocketed, underscoring the speculative intensity of the move. Historically, such sharp spikes in precious metals have often ended in abrupt “blow-off” tops. Whether this rally follows that familiar pattern is an open question.

For now, it appears that nearly every major force is working in favor of the trade.