Spot gold extended its explosive rally on Thursday, surging to a fresh record just shy of the $5,600-per-ounce mark as investors rushed into safe-haven assets amid mounting geopolitical and economic uncertainty. Silver also advanced sharply, approaching the $120 level on strong spillover demand.
Spot gold climbed 2.7 percent to $5,542.29 an ounce by 0149 GMT, after touching an all-time high of $5,591.61 earlier in the session. Prices first broke through the $5,000 barrier on Monday and have since risen more than 10 percent in a single week.
Analysts say the rally is being driven by concerns over expanding U.S. debt, fragmentation in global trade, persistent central bank buying, and a weakening dollar.
“Growing U.S. debt and uncertainty created by signs that the global trade system is splintering into regional blocs rather than a U.S.-centric model are pushing investors into gold,” said Edward Meir, analyst at Marex.
Gold has now gained more than 27 percent so far this year, after an extraordinary 64 percent surge in 2025, reinforcing its appeal beyond traditional crisis hedging.
“Gold is no longer just a crisis or inflation hedge,” analysts at OCBC said. “It is increasingly viewed as a neutral and reliable store of value that offers diversification across a wide range of macroeconomic environments.”
While some analysts caution that the parabolic rise could trigger a short-term pullback, the broader outlook remains supportive.
“Although a correction may not be far away, fundamentals are expected to stay supportive through 2026, making any dips attractive buying opportunities,” said IG market analyst Tony Sycamore.
Geopolitical tensions added to safe-haven demand after U.S. President Donald Trump urged Iran to negotiate over its nuclear program, warning that any future U.S. strike would be far more severe. 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 noting that inflation remains above the central bank’s 2 percent target.
Additional support came from crypto firm Tether’s announcement that it plans to allocate 10 to 15 percent of its investment portfolio into physical gold. Retail demand also surged across Asia, with shoppers crowding gold markets in Shanghai and Hong Kong amid expectations of further price gains.
Silver rose 1.1 percent to $117.87 an ounce after touching a record high of $119.34 earlier in the session. The metal has climbed more than 60 percent so far this year, supported by demand for cheaper alternatives to gold, supply constraints, and momentum buying.
“The silver market is expected to post another deficit this year, with reduced availability of above-ground stocks creating tightness,” analysts at Standard Chartered said.
Meanwhile, spot platinum gained 1 percent to $2,723.40 an ounce after hitting a record $2,918.80 earlier this week, while palladium slipped 1.6 percent to $2,041.20.
