As 2025 wrapped up, gold and silver prices reached all-time highs after an impressive rally. Now, money managers are optimistic about the potential for these metals to break new records this year, driven by supply issues, global political tensions, and worries over central bank independence, which all contribute to rising demand. On Monday, gold soared to a historic peak of over $4,600 per ounce, primarily sparked by the revelation that Federal Reserve Chairman Jerome Powell is facing a criminal investigation related to a significant renovation project at the central bank’s headquarters. By early Wednesday, the spot price for gold had climbed to around $4,633.46. Silver also made headlines, surpassing the $90 mark for the first time on Tuesday, with its price now sitting at $90.42, up 3.5%.
Investment strategist Daniel Casali from Evelyn Partners expressed confidence in both gold and silver on Tuesday. He attributed the persistent high prices to geopolitical instability, referencing events like Russia’s invasion of Ukraine and tariff announcements made by former President Trump. These factors create uncertainty, which continues to support gold’s value. With major nations escalating their trade war tactics, an environment of “resource nationalism” is developing, further strengthening precious metals markets.
Casali pointed out that as tariffs rose, China responded—this initiated what he calls a battle of resource nationalism between the U.S. and China. He added that China’s restrictions on rare earth exports have revealed their critical importance for various sectors including defense and technology. Silver, crucial for AI, renewable energy, and industrial production, is also subject to export controls. He mentioned that investors are keenly awaiting a possible meeting between Donald Trump and Xi Jinping in April, although he’s uncertain about the outcomes.
In the first week of 2026, discussions surrounding potential military actions regarding Venezuela and Greenland further intensified political uncertainty, adding to the overall volatility in precious metals pricing. “Both leaders are motivated to support their countries,” he noted.
There’s speculation about silver reaching $100 and gold hitting $5,000 this year, with Jupiter Asset Management’s team stating that underlying factors could indeed drive prices higher. They remarked on how physical gold rose about 65% in 2025, while silver experienced an even more impressive 150% increase. Currently, gold is up 7.1% this year, and silver is up 26.6%.
Naylor Leyland from CNBC anticipates a similar trajectory for gold, suggesting silver will likely perform even better in 2026. He highlighted a current scarcity of physical silver, mainly due to Chinese export restrictions, which has led some markets to pay a premium. “Silver is essentially vanishing into China,” he explained, emphasizing how this could significantly increase prices.
Silver is vital across numerous industries, from electronics to automotive, with Leyland asserting that nothing can be made without it.
As for gold, he expressed a belief that its rise stems from speculative interests. He believes the U.S. is likely to maintain a dovish stance, supporting further increases in gold prices. “We’re in a rate-cutting environment influenced by current policies,” he commented.
Paul Sims from Invesco also noted that the factors boosting metals last year may still be in play. The investigation into Powell’s actions has raised concerns about the Federal Reserve’s independence, further fueling interest in gold as a safer investment and hedge against inflation. While prices are already near all-time highs, Sims mentioned that there’s no immediate reason for a price drop, coupled with sustained concerns over the U.S. dollar and fiscal deficits which continue to support the metals market.
