Geopolitical Risks Dance: Gold and Silver Prices are Rising

Geopolitical Tensions and Commodity Markets

The geopolitical risks that began with the pandemic and deepened through wars and trade conflicts are continuously shaping investors' sentiment. Increasing tensions, combined with political problems in countries like Venezuela and Iran, have forced commodities to be priced with a permanent risk premium. By 2026, the world is still dealing with these constantly changing geopolitical maps, and commodities continue to be an attractive asset class for investors.

Rise in Commodity Indices

The CRB Index, which measures the pulse of global commodity markets, has increased by 2% since the beginning of the year, while the GSCI Index has gained 2.75%, drawing investors' attention. Additionally, the Shanghai Commodity Index has seen a 6% increase. Experts express that investors are now living in an 'era of geopolitical risk,' and in this era, 'the game is commodities.'

Gold and Silver on the Rise

Investors have begun to turn to gold due to the effects of increasing tensions. Gold prices have risen by 6.2% since the beginning of the year, surpassing $4,600, while silver has seen a premium of 20% and exceeded $85. Similar increases are observed in other precious metals; platinum gained 13% and palladium increased by 16%.

Fluctuations in Oil Markets

Crude oil prices are fluctuating between short-term supply risks and medium-term supply surplus concerns. Brent crude has risen by 6% since the beginning of the year, reaching $65, while WTI has surpassed $60 with a 5% increase. Political uncertainties in Iran and Venezuela carry the potential to create a permanent geopolitical risk premium in oil prices.

Strong Performance in Industrial Metals

Industrial metals are also carving out a new path in this risk environment. Copper prices hit a new record of $13,390 on the London Metal Exchange earlier this week. Aluminum futures rose to approximately $3,170 per ton, reaching the highest level in the last three years.

Strategies for the Future

Another development closely watched by the markets is Malaysia's decision to implement an official reference price for used cooking oil. In addition, Japan is launching a mining initiative to extract seabed mud to reduce its reliance on rare earth elements.