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Gold and Silver Rally as Investors Seek Safety Amid Global Economic Uncertainty

Gold bars.
Gold and silver have strengthened as investors reassess risk in a period of sustained global uncertainty.

Gold and silver have continued their upward trend into 2026, supported by geopolitical risk, central bank demand, and a weaker U.S. dollar. Both metals have outperformed traditional asset classes over the past year while reacting less to short-term macroeconomic data.


Gold rose more than 60% in 2025 and reached over 50 record highs during the year. In early 2026, it briefly traded above approximately €3,500 per ounce. J.P. Morgan expects gold to average around €4,500–€4,600 per ounce in 2026, with potential movement toward €5,300 per ounce by 2027, driven by continued reserve diversification and institutional demand.


Central banks have been net buyers of gold for 15 consecutive years, adding an estimated 270–280 tonnes in 2025. Major buyers include China, Poland, Turkey, and India. Gold-backed ETFs also saw record inflows in 2025 of more than €80 billion, reinforcing investment demand.


Silver rose approximately 147% in 2025, reaching around €65–€70 per ounce. Its performance has been supported by both investment demand and expanding industrial use, particularly in solar energy, electric vehicles, semiconductors, and AI-related infrastructure.


Supply remains constrained, with silver production expected to grow only 1–2% in 2026, as most output is tied to base-metal mining. This structural imbalance continues to support pricing pressure.


Geopolitical tensions and currency weakness have added further support, with the U.S. dollar declining roughly 10% over the past year. Analysts note that precious metals are increasingly driven by structural flows rather than short-term economic indicators.



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