Precious metals are witnessing an unprecedented surge, with silver crossing an all-time high of $100 early Friday morning and gold nearing the significant threshold of $5,000. As of 10:25 a.m. EST, silver was priced at $100.10, reflecting an increase of nearly 4%, while gold was trading at approximately $4,945.21, slightly down from an earlier peak of $4,970. Copper prices also joined the rally, exceeding $13,000 per ton and reaching up to $13,173.50.
The ongoing rise in precious metal prices has been a trend throughout 2025, prompting analysts from Goldman Sachs to revise their gold price forecast from $4,900 to $5,400 by the end of 2026. This surge is being attributed to a heightened demand for safe-haven assets, particularly in light of geopolitical tensions and economic uncertainties.
Chris Weston, a research head at Pepperstone, highlighted the influence of U.S. President Donald Trump on these market dynamics. Despite Trump’s recent withdrawal of a tariff threat against the European Union related to his controversial desire to acquire Greenland, Weston noted that the unpredictability associated with Trump’s presidency might be compelling investors to seek refuge in gold.
Analysts from Saxo Bank described the present rally as being propelled by “FOMO” (fear of missing out), alongside a growing appetite for safe-haven assets amidst escalating tensions between the U.S. and Europe, coupled with a depreciating U.S. dollar.
Several global events have contributed to the upward trend of gold and silver prices, including the U.S. capturing Venezuela’s Nicolas Maduro, protests in Iran, and new silver export restrictions imposed by China. Trump’s intentions concerning Greenland have also sparked international unrest, eliciting support for the Arctic island from European leaders while he threatened to impose tariffs on eight European nations. At the World Economic Forum in Davos, he dismissed the use of military force for the acquisition of Greenland, later stating on Truth Social that a framework for future discussions had been established.
Looking back to 2025, the year saw gold prices soaring by approximately 65%, while silver experienced a remarkable increase of around 150%. Contributing factors included federal interest rate cuts and a burgeoning demand for silver in technological sectors such as electric vehicle manufacturing and AI data centers. A particular price squeeze on silver emerged as a result of the metal stockpiling in U.S. vaults amidst fears that Trump would impose tariffs, thereby creating a supply shortage in London.
As these trends continue, the precious metals market remains a focal point of interest for both investors and analysts alike.
