Spot gold extended its impressive rally on Thursday, reaching a record high just below $5,600 per ounce as investors turned to safe assets amid ongoing geopolitical and economic uncertainties. Silver also approached a significant milestone, nearing the $120 mark.
By 0149 GMT, spot gold had increased by 2.7% to $5,542.29 per ounce, after reaching a record $5,591.61 earlier in the day.
Marex analyst Edward Meir commented, “Growing U.S. debt and uncertainties arising from signs that the global trade system is fragmenting into regional blocs, as opposed to a U.S.-centric model, are driving investors towards gold.”
The price of gold surpassed the $5,000 mark for the first time on Monday and has risen by over 10% this week, propelled by a mix of strong safe-haven demand, robust central bank purchases, and a weakening dollar.
“Gold is increasingly seen not just as a crisis or inflation hedge, but as a neutral, reliable store of value that offers diversification across a broader range of macroeconomic conditions,” stated analysts from OCBC in a note.
This year, gold has surged by over 27%, following a remarkable 64% increase in 2025.
IG market analyst Tony Sycamore noted, “Although the rapid nature of the rally suggests a pullback may be imminent, fundamental support is expected to persist throughout 2026, making any dips attractive buying opportunities.”
In geopolitical developments, U.S. President Donald Trump urged Iran on Wednesday to negotiate a deal on nuclear weapons, warning that any future U.S. attack would be significantly more severe. Tehran responded with threats to retaliate against the U.S., Israel, and their supporters.
On the U.S. policy front, the Federal Reserve maintained interest rates at their current level on Wednesday, as anticipated. Fed Chair Jerome Powell indicated that inflation in December likely remained well above the central bank’s 2% target.
Additionally, gold prices received a boost on Thursday from Tether’s plan to allocate 10%–15% of its investment portfolio to physical gold.
Meanwhile, with gold prices soaring, customers have been flocking to stores in Shanghai and Hong Kong that sell the precious metal, some speculating on further increases.
Spot silver rose by 1.1% to $117.87 per ounce after reaching a record high of $119.34 earlier. The price increase is driven by demand from investors seeking more affordable alternatives to gold, coupled with supply shortages and momentum buying. The white metal has climbed over 60% this year.
According to analysts at Standard Chartered, “The silver market is expected to experience another deficit this year, but the real market tightness comes from the reduced availability of above-ground stocks.”
Spot platinum increased by 1% to $2,723.40 per ounce after hitting a record high of $2,918.80 on Monday, while palladium decreased by 1.6% to $2,041.20.
