Gold broke all historical records and its price rose from $2,624 at the beginning of 2025 to more than $5,500 per ounce during 29 January 2026, representing a staggering increase of more than 100 % and the highest annual output of this metal since 1979. Although the gold price fell by 10% the following day to $4,880 per ounce, gold still maintains its strongest position ever. Even after the fall, the price per ounce of gold is still 74% higher in a single year. The price of silver has more than doubled, crossing the US$118 per ounce mark for the first time in history. It then fell by 26 % in one day, but still silver maintained its price of USD 85 per ounce. When precious metals rise so sharply, history teaches us to pay attention: such rises often precede or coincide with major geopolitical conflicts.
The relationship between precious metals and geopolitical instability is well documented. Throughout history, gold has served humanity as a the safest refuge in times of crisis. When the financial crisis hit in 2008, gold appreciated by 25 %. During the COVID-19 pandemic in 2020, there was an increase of 30 %. These patterns are repeated because gold represents something fundamental: a store of value independent of any government, currency or financial system.
But today's rise is different - and more worrying. Unlike previous event-driven increases, the current rise is due to what analysts call „multidimensional fear“. The war in Ukraine is now in its fourth year and there is no solution in sight. Tensions between Israel and Iran are escalating dramatically and US naval forces are massing in the region. Trade wars between major powers threaten global supply chains. Meanwhile, Central banks around the world are selling U.S. Treasury bonds en masse and buying gold in record amounts, signaling a fundamental change in how nations perceive monetary security.
The question that plagues every investor is: Are we close to war? The honest answer is that the superpowers are already engaged in various forms of conflict - economic, cyber and proxy wars. The unprecedented coordinated rise in the prices of precious metals such as gold, silver, platinum and palladium suggests that institutional investors are preparing for scenarios in which traditional financial systems may face severe pressures.
For investors and the general public, the message is clear: precious metals send a warning signal. This does not mean that global military conflict is inevitable, but it does suggest that smart investors are preparing for unprecedented uncertainty. The sharp rise in gold and silver prices reflects not only current tensions but also a growing awareness that the post-Cold War international order is undergoing its most significant transformation in decades. In such times, gold's age-old role as a hedge against crises remains as relevant as ever.
gnews.cz - GH
Data sources: Yahoo Finance, Goldman Sachs Research, JPMorgan Commodities Analysis, Bank of America Global Research.
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