Precious Metals Spot Prices Rise Amid Rising Risk Aversion in Asia-Pacific Market, Silver Industrial Demand Hits Record High

Precious Metals Spot Prices Rise Amid Rising Risk Aversion in Asia-Pacific Market, Silver Industrial Demand Hits Record High

On August 24, 2026, the Asia-Pacific precious metals market showed an upward trend with both gold and silver prices rising. This trend was driven by multiple factors, including geopolitical tensions, rising inflation expectations, and continuous gold purchases by global central banks. Notably, silver's industrial demand recently hit a record high, providing additional support to its price. This article will analyze the current dynamics of the gold and silver market, explore key factors affecting price trends, and offer the latest market insights and allocation recommendations for Asia-Pacific investors.

Gold Price Trend Analysis

As of August 24, 2026, the international gold price closed at $4,320 per ounce, up 1.2% from the previous trading day. This increase was mainly due to the rise in market risk aversion. Recently, new tensions emerged in the Middle East geopolitical situation, with increased military activities near the Strait of Hormuz, raising concerns about potential oil supply disruptions. As a traditional safe-haven asset, gold naturally attracted investors.

Technically, gold prices have risen for the third consecutive trading day, successfully breaking through the key psychological level of $4,300. Analysts note that the 200-day moving average of gold is currently around $4,250, providing strong support. If geopolitical risks persist, gold prices may further test the resistance level of $4,400.

Notably, gold purchases by global central banks remain a key factor supporting gold prices. According to the latest data from the World Gold Council, global central bank gold reserves increased by 483 tons in the first half of 2026, a record high for the same period. Particularly, central banks in the Asia-Pacific region, such as China, India, and South Korea, are actively increasing their gold reserves to diversify their foreign exchange reserve structures. This sustained demand provides a solid bottom support for gold prices.

Silver Price Shows Strong Performance

Compared to gold, silver performed even better. On August 24, 2026, the international silver price closed at $29.85 per ounce, a single-day increase of 2.5%, reaching a new high in nearly two months. Silver's strong performance was mainly due to two aspects: risk aversion demand and significant growth in industrial demand.

In terms of risk aversion, silver shares similar properties with gold, both being preferred assets for investors during increased market uncertainty. As geopolitical risks rise, silver's risk aversion demand also increases. However, unlike gold, silver has extensive industrial applications, providing additional support to its price.

According to the latest industry report, global silver industrial demand reached a record 280 million ounces in the second quarter of 2026, a year-on-year increase of 15%. This growth was mainly driven by strong demand from the photovoltaic and electric vehicle industries. As the world transitions to clean energy, the use of silver in solar panels and electric vehicles has increased significantly, boosting industrial demand. Analysts expect this trend to continue in the coming years, providing long-term support for silver prices.

Key Factors Affecting Precious Metals Prices

Currently, the key factors affecting the trend of precious metals prices mainly include the following:

• Geopolitical Risks: Tensions in the Middle East have been a recent market focus. The Strait of Hormuz, a key global oil transport channel, has its security situation directly affecting oil prices, which in turn impacts inflation expectations and risk aversion. Any event that could lead to oil supply disruptions may push up precious metals prices.
• Inflation Expectations: Although major global central banks have taken measures to control inflation, inflationary pressures still exist. Particularly in the Asia-Pacific region, inflation expectations have risen due to rising energy and food prices. As an anti-inflation asset, gold's appeal has increased accordingly.
• Central Bank Gold Purchases: Gold purchases by global central banks are a key factor supporting gold prices. Particularly, central banks in the Asia-Pacific region, such as China and India, are actively increasing their gold reserves to diversify their foreign exchange reserve structures. This sustained demand provides a solid bottom support for gold prices.
• US Dollar Trend: The strength of the US dollar directly affects precious metals prices. Typically, a weaker dollar pushes up precious metals prices as dollar-denominated precious metals become relatively cheaper. Recently, the US Dollar Index has retreated, providing support for precious metals prices.
• Interest Rate Policy: The Federal Reserve's interest rate policy is a key factor affecting precious metals prices. If the Fed continues to maintain a high-interest-rate policy, it may suppress precious metals prices as high rates increase the opportunity cost of holding gold. However, if the Fed starts to cut rates, precious metals prices are expected to rise further.

Investment Strategy Recommendations for the Asia-Pacific Market

For investors in the Asia-Pacific region, the current market environment offers good investment opportunities. Here are some specific investment strategy recommendations:

• Allocate to Gold ETFs: Gold ETFs are a convenient way for investors to allocate to gold. By purchasing gold ETFs, investors can indirectly hold gold without physically storing it. Currently, the gold ETF market in the Asia-Pacific region is growing rapidly, offering more choices for investors.
• Focus on Silver Industrial Demand: The growth in silver industrial demand provides additional support to silver prices. Investors can consider allocating to silver-related assets, such as silver ETFs or silver mining stocks, to benefit from the growth in industrial demand.
• Diversify Portfolio: In the current market environment, diversifying the portfolio is an important strategy to reduce risk. Investors can allocate part of their funds to precious metals like gold and silver to hedge against geopolitical risks and inflationary pressures.
• Long-term Holding: Considering the sustained gold purchases by global central banks and the long-term existence of inflationary pressures, holding gold and silver for the long term may be a wise choice. As strategic assets, precious metals can provide stable returns when market uncertainty increases.

Market Outlook

Looking ahead, precious metals prices are expected to continue their upward trend with fluctuations. Geopolitical risks, inflation expectations, and central bank gold purchases will continue to support precious metals prices. Particularly, silver may perform better due to its significant industrial demand growth. However, investors also need to pay attention to changes in the US dollar trend and interest rate policy, which may have short-term impacts on precious metals prices.

For investors in the Asia-Pacific region, the current market environment offers good investment opportunities. By reasonably allocating to precious metal assets like gold and silver, investors can achieve asset preservation and appreciation in an uncertain market environment. At the same time, investors should closely monitor market dynamics and adjust their investment strategies in a timely manner to respond to potential market changes.

Conclusion

On August 24, 2026, the Asia-Pacific precious metals market showed an upward trend with both gold and silver prices rising. This trend was mainly driven by the combined effects of geopolitical risks, inflation expectations, and central bank gold purchases. Notably, silver's industrial demand recently hit a record high, providing additional support to its price. For investors in the Asia-Pacific region, the current market environment offers good investment opportunities. By reasonably allocating to precious metal assets like gold and silver, investors can achieve asset preservation and appreciation in an uncertain market environment. At the same time, investors should closely monitor market dynamics and adjust their investment strategies in a timely manner to respond to potential market changes.