Gold and silver rise
Spot gold gained 2.6% to trade at $5,005.44 per ounce. It had fallen to $4,841.74 in the previous session. Gold futures for April delivery also rose 2.2% to $5,013.70. Silver saw stronger gains. It climbed around 6% to $77.97 per ounce after dropping more than 4% a day earlier. Investors are now focused on the January meeting minutes of the Federal Reserve. These minutes may give clues about the future path of interest rates. Gold usually performs well when interest rates are low or stable because it does not offer fixed returns like bonds.
Global tensions
International developments also influenced prices. The first round of US-brokered peace talks between Ukraine and Russia was held in Geneva. Ukrainian President Volodymyr Zelenskiy said the discussions were difficult and accused Russia of delaying progress. At the same time, Iran said it had agreed with Washington on guiding principles for renewed nuclear talks. While these diplomatic efforts may reduce global tensions, uncertainty still remains. During such periods, investors often turn to gold and silver as safe assets.
Factors behind
Gold had reached a record high of $5,594.82 on January 29 due to heavy buying. However, prices later dropped sharply after Kevin Warsh was nominated as the next chair of the Federal Reserve. Gold fell to around $4,403 earlier this month before recovering. Analysts say demand from exchange-traded funds in China and other Asian markets has become an important factor for gold prices. If this demand slows, prices may correct in the short term. However, China’s central bank has increased its gold reserves for 15 consecutive months. This steady buying offers long-term support to prices.
Silver vs gold
Silver rose 130% in 2025, though it saw sharp swings during the year. Analysts believe silver could perform better than gold in the coming years because of strong industrial demand. Some forecasts suggest silver may trade between $135 and $309 per ounce in 2026. Gold, which gained 64% last year amid global tensions and trade issues, could approach $6,000 if central banks continue to buy.
