Spot gold extended its blistering rally on Thursday, climbing to a fresh record just below the $5,600-an-ounce mark, as investors piled into safe-haven assets amid rising geopolitical and economic uncertainty. Silver also pushed close to the $120 level, benefiting from spillover demand.
Spot gold jumped 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 above the $5,000 threshold on Monday and have since gained more than 10 percent this week.
Analysts say the rally is being fueled by concerns over growing U.S. debt, fragmentation in global trade and sustained central bank buying, alongside a weaker 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 Marex analyst Edward Meir.
Gold has climbed more than 27 percent so far this year after surging 64 percent in 2025, reinforcing its appeal beyond traditional crisis hedging.
“Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral and reliable store-of-value asset that also provides diversification across a wider range of macro regimes,” OCBC analysts said in a note.
Despite the parabolic rise, some caution that a short-term pullback is possible, though the broader outlook remains supportive.
“Although the parabolic nature of the rally suggests a pullback is not far away, the underlying fundamentals are expected to remain supportive throughout 2026, positioning any dips as attractive buying opportunities,” said IG market analyst Tony Sycamore.
Geopolitical tensions also 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. Tehran responded with threats to retaliate 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 in December remained above the central bank’s 2 percent target.
Additional support came from crypto firm Tether’s plan to allocate 10 to 15 percent of its investment portfolio into physical gold, while retail demand surged in Asian markets, with shoppers crowding gold stores in Shanghai and Hong Kong on expectations of further gains.
Silver rose 1.1 percent to $117.87 an ounce after hitting a record high of $119.34 earlier, driven by investor demand for cheaper alternatives to gold, supply constraints and momentum buying. The metal has jumped more than 60 percent so far this year.
“The silver market is forecast to deliver another deficit this year, but the real tightness stems from reduced availability of above-ground stocks,” analysts at Standard Chartered said.
Meanwhile, spot platinum gained 1 percent to $2,723.40 an ounce after touching a record $2,918.80 earlier in the week, while palladium slipped 1.6 percent to $2,041.20.
