The prices of gold, silver, and platinum have surged to record highs, fueled by a combination of escalating geopolitical tensions and persistent economic uncertainty. This has led investors to seek refuge in precious metals, which are traditionally seen as safe-haven assets during times of turmoil.
Spot gold reached a record high of $4,967.48 an ounce. Gold futures for February also rose, exceeding $4,969.69/oz. Silver prices jumped nearly 3% to $99.0275, while platinum rose nearly 1% to $2,692.31/oz. In the UAE, 24-carat gold rose to AED597. These surges reflect a broader trend of investors moving into assets that tend to hold their value during crises.
Several factors are contributing to this rally. Heightened geopolitical tensions, including the U.S. military movements towards Iran and ongoing tensions related to Greenland, have created a risk-averse environment. Concerns about the economic outlook, attacks on the Federal Reserve, and fears regarding fiscal health in developed nations like Japan and the U.S. are also driving the demand for safe-haven assets. A softer dollar has further aided metal prices, as it makes precious metals cheaper for buyers holding other currencies.
Analysts suggest that this trend reflects a departure from historical patterns, where regional tensions would create temporary price spikes followed by normalization periods. The current market intelligence indicates that precious metals markets are pricing in sustained risk premiums, with geopolitical uncertainty remaining elevated across multiple global regions simultaneously.
Metals have had a strong start in January, as traders rush into physical safe-haven assets. Spot gold is up nearly 15% so far in 2026, silver has gained nearly 39%, and platinum has added 21%. This surge is also attributed to a weaker U.S. dollar, spurred by mixed signals on the U.S. economy and bets that the Federal Reserve will cut interest rates later in the year.
Some analysts believe that the rally in precious metals reflects concerns over a potential global surge in inflation. Large budget deficits in major economies and central banks cutting rates despite above-target inflation are also contributing to these concerns.
Looking ahead, J.P. Morgan Global Research projects continued strong investor and central bank gold demand, averaging around 585 tonnes a quarter in 2026. They expect prices to push towards $5,000/oz by the fourth quarter of 2026, with $6,000/oz a possibility longer term. Goldman Sachs raised its year-end gold price forecast to $5,400/oz from $4,900/oz, citing a broadening of private sector diversification into bullion.
