Spot gold extended its sharp rally on Thursday, hitting a fresh record high just short of the $5,600-per-ounce mark, as investors flocked to safe-haven assets amid rising geopolitical and economic uncertainty. Silver also climbed strongly, coming within striking distance of the $120 level.
Spot gold rose 2.7% to $5,542.29 an ounce by 0149 GMT, after touching an all-time high of $5,591.61 earlier in the session. Prices crossed the $5,000 milestone for the first time on Monday and have gained more than 10% this week alone.
Analysts attributed the rally to a combination of factors, including concerns over growing U.S. debt, uncertainty around global trade fragmentation, strong central bank buying, and a weakening dollar. Marex analyst Edward Meir said rising signs that the global trade system is splintering into regional blocs are pushing investors towards gold as a neutral store of value.
Gold has risen over 27% so far this year, following a 64% surge in 2025. OCBC analysts noted that gold is increasingly being viewed not just as a crisis or inflation hedge, but as a reliable asset offering diversification across multiple macroeconomic regimes.
Despite the parabolic rise raising the possibility of short-term pullbacks, analysts remain constructive on the broader outlook. IG market analyst Tony Sycamore said underlying fundamentals are expected to remain supportive through 2026, potentially making any dips attractive.
Geopolitical tensions also supported prices after U.S. President Donald Trump urged Iran to negotiate over nuclear weapons, warning of severe consequences if talks fail. Iran responded by threatening retaliation against the U.S., Israel, and their allies.
On the policy front, the U.S. Federal Reserve left interest rates unchanged, with Chair Jerome Powell stating that inflation remains above the central bank’s 2% target. Additional support came from crypto firm Tether’s plan to allocate 10%–15% of its investment portfolio to physical gold.
Meanwhile, strong retail demand was reported in Shanghai and Hong Kong, where buyers crowded gold stores amid expectations of further price gains.
Spot silver rose 1.1% to $117.87 an ounce after hitting a record high of $119.34 earlier. The metal has jumped more than 60% this year, supported by investment demand, supply shortages, and momentum buying. Analysts at Standard Chartered said the silver market is expected to remain in deficit this year due to reduced availability of above-ground stocks.
Spot platinum gained 1% to $2,723.40 an ounce, while palladium slipped 1.6% to $2,041.20.
