Gold and Silver Rally to Monthly Highs Amid Rising Policy & Geopolitical Risks

Gold and silver prices reached new monthly highs earlier this week and, at the time of writing, are trading near USD $5,180 and USD $89 per troy ounce (oz) respectively.

The recent move marks a strong recovery from the pullback experienced in late January, with gold rebounding 11% and silver outperforming with gains of 12.6% over the same period. This outperformance has driven the gold-to-silver ratio lower, now sitting around 58.

The rally in precious metals has been primarily fuelled by renewed safe-haven demand following President Trump’s announcement of newly imposed global tariffs of 15%, effective immediately.

This policy shift comes after the Supreme Court ruled that many of his prior uses of emergency powers to impose tariffs were unconstitutional. Heightened policy uncertainty has continued to weigh on risk assets (S&P 500, -0.3% since announced), reinforcing investor demand for precious metals.

Geopolitical risks have further amplified the move upside. Escalating tensions in the Middle East between the United States and Iran, alongside the largest U.S. military build-up in the region since the 2003 Iraq War, have heightened concerns around potential regional conflict.

Historically, such environments have been supportive for precious metals as investors seek protection against geopolitical shocks and equity market volatility.

Looking ahead, ongoing uncertainty surrounding global trade, geopolitics, and the potential for rate cuts in the U.S. mid-year is likely to keep precious metals supported over the near term. With underlying central bank purchasing robust and strong ETF accumulation present, gold and silver continue to play a critical role as strategic portfolio holdings in an increasingly uncertain global environment.

 Thank you for choosing ABC Bullion.

Jordan Eliseo
General Manager, ABC Bullion

Luke Tyler
Market and Business Analyst, ABC Bullion

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