22-carat gold jewellery seen at IIJS Bharat – Signature trade show in Mumbai in January 2026
By David Brough
LONDON – Gold and silver prices hit fresh record highs in January and could hit new peaks later in 2026, buoyed by geopolitical uncertainties and expectations for further cuts in U.S. interest rates.
Gold hit an all-time high of USD $4,629.94 per ounce and silver touched a record USD $86.22 per ounce on January 12, 2026, supported by worries over the independence of the U.S. Federal Reserve after a Trump administration criminal probe into Fed Chair Jerome Powell.
In 2025, gold surged 64.4 percent, its best performance since 1979, and silver was up 147 percent, bolstered by “safe haven” investor buying, falling U.S. interest rates, central bank purchases and a weak dollar. Silver prices increased on rising industrial and investor demand.
Gold and silver are presently supported by safe haven investor buying linked to uncertainties over the political outlook in Venezuela after the U.S. seized Nicolas Maduro in a military raid; concerns over President Trump’s threats to seize Greenland; worries over possible intervention President Trump may take in Iran; and concerns over the political outlook in Colombia and Cuba. Solid central bank buying has also boosted gold.
Many analysts see further upside in gold and silver prices in 2026, with gold widely expected to reach USD $5,000 per ounce this year, underpinned by safe haven buying driven by geopolitical uncertainties, as well as expectations for further U.S. rate cuts, inflows into Exchange Traded Funds, and central bank buying. Many analysts see silver testing USD $100 per ounce at some point in 2026 amid tight inventories of the grey metal.
The Fed is expected to hold rates steady at its meeting later in January 2026, after the latest benign U.S. inflation data, according to many analysts.
President Trump has been pressing for U.S. rate cuts to stimulate economic activity, amid ongoing fears in financial markets that the independence of the Fed will be eroded.
(Disclaimer: Any opinions expressed in this article are solely those of the author and should not be construed as investment advice.)
