Gold prices climbed above $4,455 per ounce, while Silver exceeded $77 per ounce due to economic and geopolitical uncertainty. Increased tensions in Venezuela, especially following the US’s arrest of Maduro, have raised demand for these precious metals. Gold benefits from central bank purchases and the expectation of a more relaxed monetary policy. Silver is gaining traction thanks to its industrial demand linked to electrification and solar energy, as well as its role as a safe-haven asset.

Gold And Silver Price Increase

Gold rose over 2.5%, and Silver increased by more than 5% during Monday’s trading. These gains are tied to global economic factors and specific geopolitical events that influence supply and demand. The FXStreet Insights Team, made up of journalists and analysts, gathers insights from market experts. Their updates offer a clear picture of current trends and forecasts for precious metals like Gold and Silver. We are seeing a notable increase in both gold and silver, driven by the situation in Venezuela and wider economic uncertainty. This has heightened demand for safe-haven investments. The current price support is expected to last until more policy clarity is provided.

Impact Of Market Volatility

The rapid price changes have increased implied volatility, with the Cboe Gold Volatility Index (GVZ) recently reaching a 9-month high above 22. Traders might consider purchasing call options for potential gains, although the costs have risen. This volatility also allows for selling puts if we believe a support level is being established. A similar surge occurred in the third quarter of 2025 when worries about the Fed’s balance sheet led to a 4% increase in gold within one week. However, that rally diminished as the Fed offered clearer guidance. This historical trend suggests that the current rise is sensitive to any new information that lowers uncertainty. Support from central banks is a crucial factor, with the World Gold Council noting that net purchases in December 2025 were the highest for that month in five years. Anticipations of a Fed rate cut in the latter half of this year are keeping the futures market in contango. Traders may want to consider longer-dated futures contracts to prepare for sustained demand. Silver’s unique position as both a safe haven and an industrial metal enhances its appeal. With the gold-to-silver ratio currently below 60, its strong performance is remarkable. Recent manufacturing PMI data showed unexpected strength in the electronics sector, suggesting silver may have more upward potential than gold. Create your live VT Markets account and start trading now.

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