Gold and silver prices have reached record highs recently, making investors look for safer places to put their money.
The move comes as markets reassess the main drivers, changing expectations about U.S. interest rates, a stronger dollar, and shifting fears around global tensions. In other words, some investors are taking profits after a big rally, while others are watching whether inflation and uncertainty stay high enough to keep pushing prices up. Adrien Cholat, an expert in mining engineering, answers key questions on what’s driving recent moves in gold, silver, and wider commodity markets.
“Gold and silver moved very fast to record levels roughly 15–20% in a few months, while silver jumped over 30% at its peak,” Adrien said exclusively to City correspondent. “A pullback of 5–10% after such a strong rally is normal, especially when investors take profits. That said, the reasons prices rose in the first place: inflation still around 3% in the U.S., global uncertainty, record government debt above $34 trillion and geopolitical tensions, haven’t disappeared. So this drop doesn’t mean the story is over.”
When it comes to what this means for market confidence, Adrien said these moves suggest caution rather than panic. “Investors are clearly uneasy about inflation, debt, and global political risks, which explains why gold and silver climbed so strongly. The recent pullback roughly 6–8% from highs show people reassessing timing, not losing faith entirely. Historically, during periods of uncertainty, gold tends to outperform equities by 10–20 percentage points over time. So overall, this tells us confidence is fragile. People aren’t panicking, but they are looking for insurance against things going wrong.”
Adrien said what people should watch next is interest rates, inflation data and central bank decisions, especially in the U.S. “Also pay attention to global events that increase uncertainty, such as geopolitical tensions or financial stress. For silver, economic growth indicators matter more. If gold holds up even when rates stay high, that suggests deeper concerns in the system. If both metals weaken sharply, it may signal improving confidence. The direction they take next will say a lot about how comfortable or uncomfortable, investors really are.”
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