Spot gold extended its blistering rally on Thursday, reaching a record high just shy of $5,600 an ounce as investors sought safety amid geopolitical and economic uncertainties.
At the same time, silver came within reach of breaching the $120 mark.
Spot gold shot up 2.7%, ending at $5,542.29 an ounce after hitting a record $5,591.61 earlier in the day. “Growing US debt and uncertainty due to signs that the global trade system is fragmenting into regional blocs rather than a US-centric model are leading investors to flock towards gold,” explained Marex analyst Edward Meir.
Prices had already surpassed the $5,000 mark for the first time on Monday and have since gained more than 10% this week, driven by factors including robust safe-haven demand, firm central bank buying, and a weaker dollar.
“Gold is no longer just a crisis or inflation hedge; it’s increasingly seen as a neutral and reliable store of value asset that also offers diversification across various macroeconomic regimes,” noted OCBC analysts in a recent report.
Gold prices have more than doubled this year following a 64% surge in 2025.
“Although the parabolic nature of the rally suggests a correction is imminent, underlying fundamentals remain supportive, positioning any declines as attractive buying opportunities,” IG market analyst Tony Sycamore added.
In geopolitical news, US President Donald Trump urged Iran to come to the negotiating table over nuclear weapons threats and warned that any future US attack would be even more severe. Tehran responded with a threat to retaliate against the US, Israel, and their supporters.
On the US policy front, the Federal Reserve decided to leave rates unchanged on Wednesday, as widely anticipated by market participants. Fed Chair Jerome Powell noted that inflation in December was likely still above the central bank’s 2% target.
Prices also received support from crypto group Tether’s plan to allocate between 10-15% of its investment portfolio into physical gold holdings.
Meanwhile, with elevated gold prices, customers have been rushing to stores in Shanghai and Hong Kong that sell precious metals. Some are betting on further gains in the metal.
Spot silver rose slightly, ending at $117.87 an ounce after hitting a record high of $119.34 earlier. “Prices have been boosted by demand from investors seeking cheaper alternatives to gold, alongside supply shortages and momentum buying,” analysts at Standard Chartered reported.
The white metal has climbed more than 60% so far this year. Analysts forecasted another deficit in the silver market due to reduced above-ground stocks availability.
Spot platinum rose slightly to $2,723.40 an ounce after hitting a record high of $2,918.80 on Monday, while palladium fell 1.6% to $2,041.20.