Gold Eyes $3,600, But Silver and Platinum Could Shine Brighter
Tuesday, August 26th 2025
The gold market continues to enjoy firm support above the $3,300 level, and while analysts anticipate fresh record highs ahead, some believe other precious metals may outperform gold in the months to come.
Gold Outlook: Strong Support and a Path to New Highs
According to Nicky Shiels, Head of Research and Metals Strategy at MKS PAMP, gold is poised to push beyond the $3,500 threshold and could “float” as high as $3,600 an ounce by year-end.
In her latest forecast update, Shiels raised her average 2025 outlook for gold to $3,200 an ounce, representing an 8% increase from her earlier projection.
She attributes the bullish momentum to traditional drivers, including upcoming Federal Reserve rate cuts, ongoing fiscal stimulus across major economies, and geopolitical uncertainty that fuels demand for safe-haven assets.
The Bigger Picture: Fiscal Dominance and Dedollarization
Shiels emphasized that global markets are entering a phase of fiscal dominance, where rising government debt and borrowing costs pressure central banks worldwide.
“We are moving back to basics,” Shiels wrote, pointing out that the market narrative is shifting away from tariff-driven headlines toward macroeconomic fundamentals, Fed policy, and the broader health of the U.S. economy.
She also highlighted the weakening position of the U.S. dollar:
- Fed rate cuts are likely to pressure the greenback.
- Geopolitical instability is accelerating dedollarization.
- Political interference—with U.S. leadership putting pressure on the Fed—adds another layer of uncertainty.
In her words, the U.S. appears to be adopting a “more emerging-market style” approach, blending elements of Turkish monetary policy and Chinese industrial policy. This, she argued, strengthens gold’s role as a hedge against U.S. instability.
Silver: Industrial Strength May Lead Outperformance
While Shiels is bullish on gold, she sees silver as having even stronger upside potential.
- 2025 Average Price Forecast: Revised up to $38 an ounce (10% higher than previous estimate)
- Upside Target: Resistance at $42 an ounce
Silver’s industrial demand is proving more resilient than previously thought. Tight lease rates and a reflationary push in global markets are expected to keep supply constrained, creating a foundation for silver to outperform gold.
Platinum: Forecast Sees Sharp Upgrade
Shiels also raised her outlook for platinum, citing structural deficits and strategic stockpiling.
- Revised Annual Forecast: $1,350 an ounce (a 38% jump from her earlier outlook)
- Potential Upside: Resistance at $1,600 an ounce
“We underestimated the resilience of PGM demand,” Shiels explained. “Instead of collapsing under auto-related tariffs and trade war concerns, platinum has been supported by deficits and a lack of available supply.”
Backwardation in both ingot and sponge markets further signals strong physical demand and tight availability.
Palladium: Modest but Steady Gains
Lastly, Shiels projects palladium to average $1,140 an ounce this year, with prices potentially testing $1,350 an ounce.
Although not expected to outperform silver or platinum, palladium remains supported by industrial demand and tight supply chains.
Bottom Line: Gold Strong, But Other Metals Shine Brighter
While gold is on track to revisit all-time highs and potentially climb to $3,600, Shiels suggests that silver and platinum may deliver greater returns in the second half of 2025.
Her message is clear: the precious metals rally is broadening, and investors should look beyond gold to capture the strongest opportunities.
