Gold Smashes Records as Systemic Geopolitical Risks Multiply

London/New York — A “perfect storm” of geopolitical instability and institutional erosion has sent precious metals soaring to uncharted territory, with Spot Gold (XAU/USD) trading near $4,670 per ounce and Silver breaching $93.

• Spot Gold (XAU/USD): Trading near $4,670
• Silver: Breaching $93

The Safe-Haven Rush

Investors are aggressively reallocating capital into tangible assets as traditional pillars of global order show cracks. Three distinct drivers are fueling the rally:

Short Squeeze and Central Banks

Market data indicates heavy short positions sitting just above current price levels, creating a potential “powder keg” for a short squeeze. Furthermore, central bank buying remains relentless. As the US Dollar's weaponization in sanctions and trade disputes increases, nations are accelerating the diversification of their reserves into gold.

Ninety One portfolio manager George Cheveley noted in a 2026 outlook that with real rates likely to fall and central banks buying, “Gold is more likely to maintain high levels or trend higher than to crash.”

Technicals

• Market Structure: Heavy short positions sitting just above current price levels suggesting potential squeeze.