Expectations of a year were fulfilled in a month.. Why are gold and silver rising at such an insane speed?
Prices of gold, silver and other precious metals began 2026 with a record surge, as investors continued to buy physical assets as a hedge against geopolitical tensions and economic uncertainty.Silver, which is characterized by greater volatility, jumped 14.6% to exceed $116 an ounce, continuing a rally that has more than tripled its value over the past year.
Ditching the Dollar
Analysts see the rise in prices for the two metals as reflecting a broader shift away from dollar-denominated assets, a phenomenon known as "Trading currency depreciation"
said Bob Gottlieb, a former metals trader who worked for… "JP Morgan" And other financial institutions: "This isn’t a temporary spike, it’s a substantial spike in terms of getting rid of The dollarin the world, as central banks protect themselves from American policy in light of their inability to predict the actions of President Donald Trump."
Meanwhile, many central banks have raised their purchases of gold since 2022 with the outbreak of war in Ukraine, and the pace of buying accelerated in early 2025 as global markets were turmoil due to the trade wars launched by President Donald Trump.
These concerns have been renewed in recent weeks as the Trump administration adopted a more aggressive foreign policy stance, including the arrest of Venezuelan leader Nicolas Maduro in a military operation, and threatening European leaders. Due to US demands to annex Greenland.
Renewed trade war
A few days ago, Trump threatened Canada with 100% tariffs, saying they would be imposed "immediately" If Ottawa concludes a trade agreement with China.
Adam Turnquist, chief technical strategist at the company, said: "LPL Financial" The current tense situation of geopolitical conflict continues to support a rise in the risk premium in gold prices"
Törnquist added that metal prices are also rising due to the decline in the value of the US dollar, which fell again to its lowest level since September. A weak dollar means relatively stronger foreign currencies, which enhances the desire of foreign investors to buy non-dollar investments.
The brilliance of silver and precious metals
On the other hand, silver prices have risen as a result of its increasing industrial uses in recent years, including solar panel projects and data centers. Gottlieb pointed to a recent decline in silver inventories on the Chicago Metal Exchange as shipments departed from the United States to other destinations.
Gold and silver have also witnessed increased demand from individual investors seeking to benefit from rising prices, as gold-backed investment funds in North America have added a record amount of about $51 billion in 2025, according to the World Gold Council.
These funds have added another $5 billion in the first weeks of 2026, Which indicates a continuation of this trend in the new year, according to Joe Cavatoni, chief market strategist at the World Gold Council.
And in other metals, Copper prices also reached historic levels as a result of the Trump administration imposing 50% tariffs on finished products in July last year.
Futures linked to platinum and palladium, both used in cars and other industrial products, have risen more than 25% since the beginning of the year.
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