Precious metals dominated the commodities market in 2025, with silver outperforming most major equity indexes and currencies, while gold reached record highs amid ongoing economic and geopolitical uncertainty. Industrial metals also recorded strong gains, highlighted by copper hitting all-time highs, while agricultural products and crude oil struggled.
Silver was the standout performer, climbing 161% this year and breaking the $80 per ounce mark for the first time. Gold rose 66%, supported by sustained central bank purchases and investor demand for safe-haven assets. Platinum and palladium also recorded strong annual gains, reflecting solid industrial and investment demand.
“Demand for metals is looking solid from both an industrial and retail perspective,” said Tim Waterer, chief market analyst at KCM Trade. He noted that expectations of lower US interest rates in 2026 could continue to support precious metals. Jason Ying, a commodities analyst at BNP Paribas, said, “We continue to see upside in precious metals as a lot of the risks from this year remain going into 2026.”
Copper soared to a record $12,960 per tonne on the London Metal Exchange, finishing 2025 up nearly 44%. Factors behind the rally included a weaker US dollar, rising demand for artificial intelligence and renewable energy technologies, and mine output disruptions. Tin and aluminium also gained, supported by supply constraints in Southeast Asia and policy measures in China, while iron ore benefited from resilient demand despite falling Chinese steel production.
Energy commodities, by contrast, faced headwinds. Brent crude and US West Texas Intermediate crude fell roughly 15% in 2025, with Brent set for its longest annual loss on record. Rising global supplies outweighed disruptions caused by the war in Ukraine and US sanctions on Venezuelan oil. OPEC+ has paused output increases in early 2026 after releasing around 2.9 million barrels per day during 2025. Martijn Rats, global oil strategist at Morgan Stanley, said further cuts could follow if prices fall significantly.
Agricultural markets struggled this year, led by cocoa, which tumbled 48% after a sharp rise in 2024 boosted both supply and reduced demand. Raw sugar and robusta coffee also lost around 20% of their value. Wheat, corn, and Malaysian palm oil ended the year weaker amid ample global supplies, while soybeans recovered slightly following renewed Chinese imports. Rubber declined 9% as better weather in Thailand increased output, but sluggish automotive demand limited gains.
Overall, analysts say the outlook for 2026 favors precious and industrial metals, driven by continued investment demand and technological applications, while agricultural and energy commodities may face challenges from oversupply and moderate demand growth.
The performance of commodities in 2025 highlights the growing divergence within the market, with metals offering strong returns amid a more challenging environment for energy and agricultural goods.
