The Impact of Geopolitics on the Gold and Silver Market

Gold has traditionally been regarded as a “safe haven,” with demand increasing and driving up metal prices. Silver ranks as the second most significant precious metal, serving not only as a protective asset for investors but also as an important component in the development of green technologies and the electronics industry. At the same time, silver is even more susceptible to price volatility than gold, as its price may rise alongside gold during periods of uncertainty but decline when industrial demand falls.

The influence of geopolitics on the gold and silver markets is particularly evident during major contemporary crises. Currently, global gold prices show a clear upward trend, even taking into account short-term fluctuations. In early 2026, quotations reached historic highs, exceeding $5,000 per troy ounce, and in mid-June 2026, the spot price ranged between $4,300 and $4,500. By early 2027, the price is forecast to be in the range of $5,000–6,000 per ounce. Silver quotations are also at historic highs, reaching $69–70 per ounce in June 2026.

The following factors can be identified as having a significant impact today on the record prices of gold and silver and the growth in their use: central banks seek to diversify their foreign exchange reserves amid uncertainty and reduce dependence on the U.S. dollar; aggregate demand for gold and silver is increasing despite rising prices; and the geographical structure of demand is changing, with countries such as China and India increasing their share in global consumption of these metals. In the future, the gold and silver market will remain influenced by inflation expectations, Federal Reserve decisions, the state of the global economy, and geopolitical instability.

Author: Candidate of Economic Sciences, Associate Professor of the Department of World Economy and World Finance, Financial University under the Government of the Russian Federation Anna Anatolyevna Prudnikova.