Geopolitical Tensions and Trade Conflicts Drive Gold and Silver to Record Highs
Gold surged past $4,600 an ounce following reports of a criminal investigation into Federal Reserve Chair Jerome Powell, linked to a $2.5 billion headquarters renovation. By Wednesday, spot gold traded at $4,633.46, while silver broke $90 for the first time, climbing 3.5% to $90.42 per ounce.
The rally extends a brutal year for metals bears. In 2025, gold ROSE 65%, with silver skyrocketing 150%. January brought no respite—gold is up 7.1% year-to-date, silver 26.6%. Money managers see no relief in supply constraints or geopolitical risks.
Daniel Casali of Evelyn Partners cites escalating U.S.-China trade tensions and resource nationalism as key drivers. "When TRUMP hiked tariffs, China retaliated," he notes, framing the conflict as a battle over resource control. Russia’s invasion of Ukraine and Trump’s "liberation day" tariffs further fuel demand for safe-haven assets.
