Gold, Silver Prices Rally on Geopolitics, Currency Moves and Structural Demand
Global gold and silver prices witnessed sharp volatility over the past few weeks, driven by a mix of geopolitical tensions, currency fluctuations, and strong structural demand. Gold surged more than 6% in just three sessions, briefly approaching the key psychological level of $5,000 per ounce, while silver touched near-record highs above $95 per ounce.
Key Drivers Behind the Rally
Geopolitical Uncertainty: Tensions linked to Greenland and fears of potential trade tariffs triggered a rush toward safe-haven assets, lifting gold sharply. Prices cooled slightly after diplomatic signals eased concerns, highlighting gold’s role as a geopolitical hedge.
Currency Impact: Movements in the US dollar played a crucial role. A stronger dollar capped gains, while rupee weakness kept domestic gold and silver prices in India elevated.
Structural Demand for Silver: Unlike gold, silver remained firm due to strong industrial demand, especially from solar energy, electronics, and electrification sectors, which now account for over half of global consumption.
What Experts Say
Global investment banks remain positive on gold’s long-term outlook. Forecasts suggest gold could move toward $5,400 per ounce in 2026, supported by central bank buying and risk hedging. Silver, though fundamentally strong, is seen as more volatile, with analysts warning of possible short-term corrections.
Investor Takeaway
The rally reflects a market adjusting to geopolitical risks, currency pressures, and long-term industrial demand. While precious metals may stay expensive, experts advise disciplined investing and phased allocations rather than chasing short-term momentum.
