Jakarta, CNBC Indonesia – World gold and silver prices have set another record and still have the opportunity to rise higher this year. A number of global investors see the opportunity for gold prices to exceed US,000 per ounce and silver to exceed US$100, amid heated geopolitical tensions and struggles for control over strategic resources.
At the beginning of this week, the price of gold touched a new record above US$4,600 per ounce, triggered by news that US Federal Reserve Chairman Jerome Powell was under criminal investigation regarding the US$2.5 billion renovation of the Fed’s headquarters. As of Wednesday morning local time, spot gold had strengthened again to US$4,633.46 per ounce.
Meanwhile, spot silver broke through the psychological level of US$90 per ounce, trading at around US$90.42, up 3.5%. Behind this surge, investors see one main factor that is increasingly dominant, namely natural resource nationalism.
Partner Investment Strategy at Evelyn Partners, Daniel Casali said, the world is now entering a new phase where large countries are competing to secure control over strategic resources. He said geopolitical instability had created uncertainty which continued to support gold prices.
“When President Trump started raising tariffs, China responded by limiting exports of rare earth minerals. It was not just a trade war, but a war of resource nationalism,” he said, quoted from CNBC International, Friday (16/1/2026).
China limits exports of rare earths which are crucial for defense, technology and artificial intelligence (AI). Not long after, export restrictions also targeted silver, a vital commodity for AI, electric vehicles, renewable energy and the global manufacturing industry.
“Silver is now as important as chips. Without silver, there is no AI, no EVs, no technology,” said Casali.
Geopolitical tensions also escalated after the US overthrew Venezuelan President Nicolas Maduro and the emergence of military talk to control Greenland. The US has even begun to limit China’s access to Venezuelan oil, one of Beijing’s main energy sources.
“All of these are geopolitical chess pieces. And the key message: resource nationalism can push gold and silver prices much higher,” stressed Casali.
New Target: Gold US$5,000, Silver US$100
Ned Naylor-Leyland, Investment Manager at Jupiter Asset Management, called the US$5,000 gold and US$100 silver scenario something that is very likely to happen this year.
“Given the current fundamental conditions, investors should assume that will happen,” he said.
Throughout 2025, the price of gold has jumped 65%, while silver has skyrocketed 150%. Entering 2026, gold has risen 7.1% and silver has jumped 26.6% in just a matter of weeks.
The physical supply of silver is also getting tighter. Silver disappeared into China and India, even trading at a US$10 premium in Shanghai.
“The silver market is now about physical bullion. If the price gap between Asia and the West remains wide, physical silver in London and New York will continue to flow to the East,” said Naylor-Leyland.
Apart from geopolitics, concerns about the independence of the Fed also strengthen gold’s position as a hedging asset. Paul Syms, Head of Commodity Product Management at Invesco, said the pressure on Powell increased market doubts about US monetary policy.
“Uncertainty regarding the US dollar, budget deficits, the prospect of lower interest rates, and geopolitical conflicts make gold and silver increasingly attractive as safe havens,” he said.
According to Syms, there are almost no short-term catalysts that can suppress gold and silver prices. Instead, industrial demand for silver and inflation concerns created a very strong foundation for the precious metal’s rally.
(haa/haa)
[Gambas:Video CNBC]
