Silver and Gold Prices Reach Record Highs Amid Geopolitical Uncertainty

Global Market Impact

Silver prices have surged to a record high, exceeding $83 per ounce ³

, as geopolitical tensions and expectations of further US interest rate cuts drive demand for precious metals. The rise in silver follows a similar surge in gold prices, which have also reached new record levels due to increased global uncertainty ¹

Source 1

https://investasi.kontan.co.id/news/cetak-rekor-baru-bagaimana-perak-diperdagangkan-di-pasar-global

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Source 2

https://finansial.bisnis.com/read/20260112/89/1943524/terungkap-2-penyebab-utama-harga-emas-melejit-awal-tahun-2026

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Geopolitical Factors

The escalation of protests in Iran, now in their third week, has significantly contributed to the price increase. The situation has resulted in hundreds of reported deaths, heightening geopolitical tensions in the region ²

. US President Donald Trump's warnings against Iran's handling of the protests, coupled with threats of potential US action, have further amplified market uncertainty. Trump's statements about considering various options regarding Iran, alongside his previous actions against Venezuela and comments on NATO alliances, have compounded global geopolitical risks ²

Source 2

https://finansial.bisnis.com/read/20260112/89/1943524/terungkap-2-penyebab-utama-harga-emas-melejit-awal-tahun-2026

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Monetary Policy Expectations

Market participants are betting on additional interest rate cuts by the US Federal Reserve following a weaker-than-expected US jobs report. The expectation of lower interest rates typically boosts the appeal of non-yielding assets like gold and silver ²

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Source 3

https://investasi.kontan.co.id/news/harga-perak-melonjak-ke-rekor-tertinggi-baru

. Traders are currently pricing in at least two rate cuts by the Fed this year, despite the central bank's indication to maintain a stable policy in the near term ³

Source 3

https://investasi.kontan.co.id/news/harga-perak-melonjak-ke-rekor-tertinggi-baru

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Market Reaction

The combination of geopolitical risks and monetary policy expectations has created a perfect storm supporting precious metals. Charu Chanana, a strategist at Saxo Markets, noted that the market is facing multiple layers of uncertainty, including growth concerns, interest rate debates, and institutional risk premiums ²

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