Gold and silver hit record highs as investors seek safety amid global tensions

Gold and silver prices have surged to record highs, driven by rising global political tensions and growing demand for safe-haven investments, according to market analysts and precious metals experts.

In Bahrain, the rally has been particularly noticeable, with experts forecasting that 21-carat gold could reach around BD 60 per gram by the end of 2026 if global uncertainty continues and interest in traditional stores of value remains strong.

Why gold prices are climbing

Analysts point to a combination of factors fueling gold’s upward momentum:

• Escalating geopolitical tensions across multiple regions

• Ongoing economic uncertainty and market volatility

• Increased demand from investors seeking protection against inflation and risk

• Central banks continuing to strengthen gold reserves

Gold’s long-standing reputation as a reliable hedge during periods of instability has once again made it a preferred choice for both institutional and retail investors.

Silver’s sharper but less stable rise

Silver prices have risen faster than gold in recent weeks, surprising many market watchers. However, specialists caution that silver’s rally may be short-lived.

Unlike gold, silver is not viewed as a pure safe-haven asset. Experts say its recent surge is largely linked to gold’s rising prices, rather than independent demand for silver as a defensive investment.

“Silver often follows gold during strong rallies, but it tends to be more volatile,” analysts note, adding that corrections in silver prices are more common once gold stabilizes.

What this means for buyers and investors

For consumers in Bahrain, higher prices may impact jewelry purchases, especially ahead of weddings and festive seasons. For investors, the current environment highlights gold’s continued role as a long-term wealth-preservation asset, while silver remains a higher-risk, short-term play.

Market observers recommend closely tracking global developments, as any easing of political tensions or shifts in monetary policy could influence precious metal prices in the months ahead.