The Impact of Geopolitics on the Gold and Silver Markets

Gold has traditionally served as a “safe haven,” with demand increasing and driving prices higher. Silver ranks as the second most important precious metal, serving not only as a protective asset for investors but also as a key component in the development of green technologies and the electronics industry. At the same time, silver is even more volatile than gold: its price may rise alongside gold during periods of uncertainty, but it tends to decline when industrial demand weakens.

The impact of geopolitics on the gold and silver markets is particularly evident during major modern crises. Currently, global gold prices are showing a clear upward trend, even accounting for short-term fluctuations. Prices reached historic highs in early 2026, exceeding $5,000 per troy ounce, and in mid-June 2026 the spot price stood at $4,300–4,500. By early 2027, prices are projected to range between $5,000 and $6,000 per ounce. Silver prices are also at historic highs, reaching $69–70 per ounce in June 2026.

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

Author: PhD in Economics, Associate Professor, Department of World Economy and World Finance, Financial University under the Government of the Russian Federation, Anna Anatolyevna Prudnikova.