Silver and Gold Prices Continue to Break Records Supported by Geopolitical Tensions

SadaNews - Gold, silver, and platinum prices have risen to all-time highs, as escalating geopolitical tensions and a weak dollar have extended a historic upward trend for precious metals.

Gold rose in spot trading by 1.2% to a record level exceeding $4,530 per ounce. Tensions in Venezuela, where the United States intensified its blockade on oil tankers and ramped up pressure on Nicolás Maduro's government, contributed to enhancing the appeal of the precious metal as a safe haven.

In Africa, the United States launched a "strong and deadly strike" against ISIS in Nigeria, according to a social media post by U.S. President Donald Trump.

Silver rose in spot trading for the fifth consecutive session, climbing as much as 4.6% to surpass $75 per ounce for the first time.

Recent gains in the white metal have been bolstered by speculative flows and ongoing supply disruptions across major trading hubs, following a historic pressure wave in October.

The Bloomberg dollar spot index, which measures the strength of the U.S. currency, fell by 0.7% during the week, marking its largest decline since June. Generally, a weak dollar supports the prices of gold and silver.

Factors Supporting the Historic Uptrend

Gold has risen by about 70% this year, and silver has surged by more than 150%, with both metals on track for their best annual performance since 1979. This sharp rise has been driven by increased purchases from central banks, inflows into exchange-traded funds (ETFs), and three consecutive interest rate cuts from the U.S. Federal Reserve.

Low borrowing costs are a supportive factor for precious metals that do not yield returns, while traders bet on further interest rate cuts in 2026.

Intense buying by ETFs has been a major driver of the recent surge. According to data from the World Gold Council, total holdings in gold-backed funds have increased every month this year except for May, while holdings in the SPDR Gold Trust, the largest ETF for precious metals, have risen by more than one-fifth this year.

Silver's Rise Outpaces Gold

Silver's rise has been even stronger than that of gold. London vaults have seen significant inflows since the pressure wave in October, yet a large portion of the silver available globally remains in New York, as traders await the results of an investigation by the U.S. Department of Commerce into whether imports of critical metals pose a national security threat. This could lead to tariffs or trade restrictions on the metal.

Partially for the same reason, platinum has also seen a strong rise in the past weeks, with its price jumping over 40% this month alone. The metal traded above $2,400 per ounce for the first time since Bloomberg began collecting data in 1987.

In addition to rising physical demand, supply for users in the automotive and jewelry sectors is on track to record a third annual deficit this year, mainly due to disruptions in South Africa, one of the largest producing countries.

Gold rose by 0.8% to $4,516.50 per ounce at 4:20 PM in Singapore. Silver increased by 4% to $74.71. Platinum jumped by 4.6% to $2,361.54. Palladium also gained 4%.