Why Silver and Gold Prices Are Rising While Crypto Falls Under Tariff Pressure?

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Coingapestaff

Coingapestaff

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Why Silver and Gold Prices Are Rising While Crypto Falls Under Tariff Pressure?

Highlights

  • Silver and gold thrive amid rising geopolitical and economic uncertainty.
  • Cryptocurrencies face declines as investors shift to safer assets.
  • U.S.-EU trade tensions push precious metals to new record highs.

Silver and Gold prices have recently hit new record highs, benefiting from growing investor demand for safe-haven assets. The surge in these precious metals comes amid increasing geopolitical uncertainty, primarily due to rising tariff tensions between the U.S. and the European Union. 

While Gold and Silver soar, the cryptocurrency market has struggled.  The crypto markets are also losing heavily, with the current price of Bitcoin under $93,000 and Ethereum under $3,100. This is a part of the general economic strain, in that the crypto market decreased by 2.27% over the past 24 hours.

Other coins like SOL, DOGE, and ADA are also on bearish trends, most of which are due to the trade tensions and market uncertainty.

Increasing tariff threats causing investors to be cautious about stock market risks, especially by the U.S. President Donald Trump. To safeguard their wealth, many have resorted to the use of traditional safe-haven assets such as gold and silver.

Trump Confirms Trade Talks at Davos, Signaling Eased Tensions with EU

The U.S. and European Union trade tensions may soon ease as President Donald Trump announces upcoming negotiations at the World Economic Forum in Davos. Trump discussed a very good conversation with NATO Secretary General Mark Rutte.

These debates will cover topics of Trump’s tariff proposals, such as a 10% tariff on some products.

The fact that the talks have been confirmed has led to an inclination towards diplomacy, which has given hope of a solution to the trade dispute. The Davos conferences are supposed to be very important in future relations of the U.S and European Union.

Silver Price Hits ATH Above $95: Is the $100 Mark Next?

Silver prices have surged to new heights, recently surpassing $95 per ounce. This represents a 31% increase year-to-date (YTD), driven by safe-haven demand and industrial needs. With the increased level of global market instability, investors are rushing to silver as a security against economic unpredictability.

As the demand by investors and industries keeps on rising, silver is set to achieve new heights. Analysts believe that silver might even hit the 100 per ounce mark if the trend progresses.

Gold Prices Surge to Record Highs Amid U.S.-EU Tariff Disputes

Gold has also reached unprecedented levels, with prices climbing to over $4,750 per ounce. This record increase is mainly linked to the increased volatility in the market due to the U.S.EU tariff tussles.

Gold has been regarded as a safe investment in periods of geopolitical and economic crisi,s and its recent performance proves this role.

Looking ahead, many analysts believe that gold’s price could continue to climb. As the political tensions and trade uncertainties continue to be high, the yellow metal is expected to retain its high appeal.

Silver and Gold Prices Prediction: What Lies Ahead for January?

Looking forward to January, the outlook for Silver and Gold remains promising. The current tariff threats the U.S. and Europe are having are likely to create a rising interest in the precious metals.

Silver could keep on its great rise and may even surpass the 100 mark with the demand in the industrial and the investor market rising.

Gold, as well, may move up to the 4800 range, which is backed by its status as the safe-haven commodity in times of insecurity.

Although it is anticipated that silver and gold will continue to grow, the future of cryptocurrencies is questionable. Bitcoin and Ethereum can be subjected to further declines as the players in the market find higher stable assets in the face of geopolitical risk.

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Frequently Asked Questions (FAQs)

1. Why are silver and gold prices rising?

Silver and gold prices are rising due to growing demand as safe-haven assets amid geopolitical and economic uncertainties.

2. What is causing the instability in the cryptocurrency market?

Cryptocurrency prices are struggling due to broader economic pressures, including ongoing trade tensions and market uncertainty.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

XAUT

Tether Gold

$4,741.0483 1.52% (24h)

24 Hours volume

$150.12M

Market Cap

$1.17B

Max Supply

NA

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About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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