Gold continued its strong rally on Thursday, climbing past $5,600 an ounce as investors sought safety amid global uncertainty. The metal first broke the $5,000 mark earlier this week, marking a gain of more than 10% in just a few days.
The surge is being driven by several factors, including steady central bank purchases, continued investor interest in safe-haven assets, and a weaker US dollar. Early trading in Asia pushed gold on COMEX to $5,625.89 per ounce at one point, just above the $5,600 level. Analysts now expect prices could reach $6,000 by the end of the year, though some believe that ceiling may be surpassed sooner.
“Geopolitical tensions, a weaker dollar, and investors moving away from currencies have boosted gold,” said Ewa Manthey, commodities strategist at ING Group. Silver has also surged, up nearly 65% year-to-date, outperforming gold’s roughly 27% gain.
The rally continued despite the Federal Reserve keeping interest rates unchanged this week. Fed Chair Jerome Powell noted that inflation remains well above the 2% target, but investors appear more focused on broader risks than on short-term monetary policy. Two Fed governors had dissented in favor of a small rate cut, yet markets expect rates to remain steady through the end of the quarter and possibly until Powell’s term ends in May.
Geopolitical tensions are also supporting bullion prices. US President Donald Trump urged Iran to negotiate over nuclear weapons, warning that future strikes could be severe, while Tehran threatened retaliation. Meanwhile, Russia’s drone strikes in Ukraine, including a recent attack on a passenger train, have added to global uncertainty.
“This mix of geopolitical risk and US Dollar weakness is helping gold extend its nine-day winning streak and push past $5,600,” said Haresh Menghani, editor at FXStreet. Silver is close behind, nearing a record $120 per ounce, having touched $119.45 earlier in the day.
The strong demand for precious metals shows investors remain cautious amid political and economic volatility, keeping gold and silver firmly in favor as safe-haven assets.
