Commodities – Creator

Gold and Silver Hit Record Highs as US–Europe Trade War Fears Intensify

Gold and silver prices surged to historic highs at the start of the week, as rising geopolitical tensions between the United States and Europe triggered a fresh rush into safe-haven assets. Investor anxiety has intensified following US President Donald Trump’s renewed push to acquire Greenland, a move that has sharply escalated the risk of a full-blown trade confrontation between Washington and several European capitals.

Spot gold climbed to around $4,670 per ounce, while silver jumped as much as 4.4%, reflecting strong demand for precious metals amid a weakening dollar and growing uncertainty across global markets. The rally builds on momentum from the previous week, when silver briefly surged past $90 per ounce for the first time on record and gold pushed beyond $4,630.

The surge was not limited to precious metals. Tin led gains among base metals, rising as much as 6%, while copper briefly touched a record high before paring back some of its gains. The broad rally underscores heightened investor concern over global trade, political risk, and the future direction of monetary policy.

Trade war fears take centre stage

Tensions escalated after the Trump administration announced plans to impose new tariffs on eight European countries, including France, Germany, and the United Kingdom. The countries are among those opposing Washington’s stance on Greenland, according to US officials.

Under the proposed measures, 10% tariffs are set to take effect on February 1, with the rate scheduled to rise to 25% by June if negotiations fail to ease tensions. European leaders are expected to hold emergency talks in the coming days to assess the economic and political implications of the move.

EU member states are reportedly considering retaliatory tariffs on up to €93 billion ($108 billion) worth of US goods. French President Emmanuel Macron is also said to be weighing the activation of the European Union’s anti-coercion instrument (ACI)—a powerful trade defence mechanism that would allow the bloc to respond forcefully to what it deems coercive economic actions.

Metals rally driven by global uncertainty

Precious metals have posted strong gains since the beginning of 2026, extending the sharp upward trend seen throughout much of 2025. Analysts say the rally reflects a combination of geopolitical stress, fears of currency debasement, and growing concerns about the independence of key institutions.

Market sentiment has been further unsettled by the US government’s seizure of Venezuela’s leader and renewed rhetoric around Greenland. At the same time, President Trump’s repeated public criticism of the US Federal Reserve has stoked worries about political interference in monetary policy.

These concerns have fueled what market participants describe as the “debasement trade,” where investors rotate out of fiat currencies and government bonds into hard assets such as gold and silver, particularly as public debt levels continue to rise.

Adding to the momentum, Chinese investors have been increasing their exposure to metals, contributing to a broader global shift into commodities. Exchange-traded funds backed by gold recorded inflows of 28 tonnes last week—an increase of 0.9%—marking the largest weekly rise since September. ETF holdings have now expanded in seven of the past eight weeks, highlighting sustained investor appetite.

Market snapshot

As of 6:59 a.m. Monday, spot gold was up 1.6% at $4,670.47 per ounce, after earlier touching a peak of $4,690.59. Silver rose 3.4% to $93.18, having briefly reached $94.12. Platinum edged slightly higher, while palladium slipped marginally. Meanwhile, the Bloomberg Dollar Spot Index declined by 0.2%, supporting gains in dollar-priced commodities.

Investors are also closely monitoring an upcoming US Supreme Court hearing, scheduled for Wednesday, which will consider President Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook. The outcome of the case could have far-reaching implications for the Fed’s autonomy and has added another layer of uncertainty to already fragile global markets.

What you should know

Gold, silver, copper, and tin all hit fresh record highs last week, marking a dramatic start to 2026 for commodities.
Commodity markets have delivered outsized gains since late 2025, driven by geopolitical risks and expectations of further US interest rate cuts aimed at supporting economic growth.
Analysts say precious metals are likely to remain well-supported as long as trade tensions persist and confidence in traditional financial assets remains under pressure.

Silver Soars Over 18% to Record Best Christmas Week Ever, Outpacing Gold

Silver delivered a historic performance in the week ended December 26, 2025, posting its strongest Christmas week rally on record and firmly outshining gold in the process. Prices climbed by an impressive 18.1% over the week, rising from an opening level of $67.16 per ounce to close at $79.32 per ounce. This surge marks silver’s best festive-season performance ever, eclipsing the previous record gain of 17.8% recorded in July 2020, at the height of global uncertainty during the COVID-19 crisis.

The latest rally caps what has been an extraordinary year for the precious metal. In 2025 alone, silver has gained more than 174% year to date, with nine out of the eleven months so far closing in positive territory. The rally has been particularly strong since June, evolving into a sustained bullish run that carried through late December. This consistent upward momentum has placed silver among the best-performing commodities globally this year.

Silver’s performance has also clearly outpaced gold. While gold has enjoyed a strong year, rising about 72.7% year to date, silver’s gains have been more than double that pace. Analysts note that silver’s move above the psychologically important $50 per ounce level earlier in the year played a critical role in accelerating the rally, setting the stage for the sharp gains seen in recent weeks.

What the price action is signalling

Market analysts attribute silver’s dramatic rise to a powerful mix of technical and fundamental drivers. On the technical side, the break above the long-standing $50 resistance level was a major turning point. Historically, this price level has proven difficult to sustain, with previous breakouts in January 1980 and April 2011 failing to hold for long.

In mid-October 2025, silver briefly crossed $50, closing the week ended October 13 at $51.86. At the time, many investors remained cautious, waiting for confirmation that the breakout was genuine. Prices subsequently pulled back toward the $48.30 range, allowing the market to consolidate. When silver convincingly broke above $50 again in the week ended November 24, 2025, it triggered renewed investor confidence, setting off a strong rally that extended into a five-week winning streak through the Christmas week.

Fundamentally, silver continues to benefit from robust industrial demand and tightening supply conditions. Expectations of lower interest rates have also been supportive, as precious metals tend to perform well in a lower-yield environment. The outlook for monetary easing by the Federal Reserve has strengthened investor appetite for non-yielding assets such as silver and gold.

Favourable macro and policy factors

According to UBS analyst Giovanni Staunovo, the prospect of lower U.S. interest rates, combined with broader macroeconomic uncertainties, is underpinning strong demand for both gold and silver, pushing prices to fresh highs. Market participants are increasingly pricing in at least two U.S. interest rate cuts in 2026, a scenario that typically weakens the dollar and boosts precious metals.

In addition, calls for looser monetary policy from U.S. President Donald Trump have added to expectations of a more accommodative policy environment, further supporting demand for safe-haven assets.

Structural demand and supply deficit

Beyond financial market dynamics, silver’s rally is being reinforced by structural demand from the real economy. According to data from the Silver Institute, industrial demand for silver reached a record 680.5 million ounces in 2024, representing a 4% increase from the previous year. This marked the fourth consecutive year of record-high industrial consumption.

Growth has been driven largely by the global transition to clean energy, including investments in grid infrastructure, electric vehicles, and solar photovoltaic applications. Rising demand from AI-driven data centres and consumer electronics has also played a significant role.

As a result, global silver demand has exceeded supply for four straight years, creating a structural market deficit of 148.9 million ounces in 2024 alone. Between 2021 and 2024, the cumulative supply shortfall reached 678 million ounces—roughly equivalent to ten months of global mine production in 2024.

Outlook

With strong industrial demand, tightening supply, and a supportive macroeconomic backdrop, analysts believe silver’s rally may have further room to run. While short-term pullbacks remain possible after such a sharp advance, the metal’s record-breaking Christmas week performance underscores its growing appeal as both an industrial commodity and a financial asset. For investors, 2025 is shaping up as a defining year in silver’s modern market history.