Top Banks’ Precious Metals Traders Post Best Q1 Performance in Five Years

Traders at leading global investment banks including JPMorgan Chase and Morgan Stanley posted their best quarterly performance in the precious metals market in five years, capitalizing on the ongoing rally in gold, silver, and other key metals. This performance comes amid a renewed global appetite for safe-haven assets and surging industrial demand for silver and platinum group metals.

Q1 2025: A Breakout Quarter for Precious Metals Trading

According to internal reports and market analysts, precious metals trading desks at these top-tier banks saw sharp year-over-year gains in both trading volumes and revenue. The stellar performance in the first quarter of 2025 marks the best start to a year since 2020, when pandemic-related uncertainty had previously boosted the metals market.

The current rally is being fueled by:

• Escalating global inflationary concerns

• Rising geopolitical tensions in Eastern Europe and Asia

• Strong industrial and clean energy-driven demand

• Central bank gold purchases and reserve diversification

JPMorgan and Morgan Stanley reportedly gained significantly from long positions in silver and gold futures, options trading, and arbitrage between spot and derivatives markets.

Silver and Gold Drive Profits

Silver’s meteoric rise—nearing the $37 per ounce mark—was a key driver of profits, especially as banks had positioned themselves ahead of the surge through both physical holdings and derivative instruments. Gold, which has also performed strongly and remains above $2,300/oz, provided stable hedging opportunities and spread-trading profits.

Risk-Managed Success

What differentiates this performance from previous years is not just the scale of gains but the risk-adjusted returns. Many banks have tightened their metals risk frameworks in the aftermath of regulatory scrutiny and legacy manipulation cases from the past decade. This time, traders succeeded within a more disciplined and transparent operating environment.

Broader Sector Implications

This exceptional quarter for precious metals desks also reflects wider market trends:

• Institutional investors are increasing allocations to metals as long-term inflation hedges.

• ETFs and retail flows into physical silver and gold products have surged.

• Mining stocks and metal ETFs have outperformed broader equity indices.