Spot gold extended its record-breaking rally on Thursday, edging closer to the $5,600-per-ounce level as investors sought safety amid geopolitical and economic strains, while silver came within a whisker of breaching the $120 mark.
Spot gold was up 2.1% at $5,511.79 an ounce, as of 0039 GMT, after hitting a record $5,591.61 earlier in the day.
Why gold is being re-rated in portfolios
“Rising government debt burdens, geopolitical concerns and policy unpredictability have accelerated a structural re-rating of gold’s role in portfolios,” analysts at OCBC said in a note.
“Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral, and a reliable store of value asset that also provides diversification across a wider range of macro regimes.”
Prices jumped past the $5,000 mark for the first time on Monday and have gained more than 10% so far this week, driven by a cocktail of factors including strong safe-haven demand, firm central bank buying and a weaker dollar.
“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,” IG market analyst Tony Sycamore said.
Geopolitical news, Fed signals and fresh demand drivers
In geopolitical news, U.S. President Donald Trump urged Iran on Wednesday to come to the table and strike a deal on nuclear weapons, warning that any future U.S. attack would be far more severe. Tehran responded with a threat to strike back against the U.S., Israel and those who support them.
On the U.S. policy front, the Federal Reserve decided to leave rates unchanged on Wednesday, as widely expected. Fed Chair Jerome Powell said inflation in December was likely still well above the central bank’s 2% target.
Gold has gained more than 27% this year following a 64% jump in 2025.
On Thursday, prices also drew support from crypto group Tether’s plans to allocate 10%–15% of its investment portfolio to physical gold.
Meanwhile, with elevated gold prices, customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting it could rise even further.
Spot silver was up 1.3% at $118.061 an ounce after hitting a record high of $119.34 earlier. Prices have been helped by demand from investors looking for cheaper alternatives to gold, along with supply shortages and momentum buying. The white metal has jumped more than 60% so far this year.
“The silver market is forecast to deliver yet another deficit this year, but the real market tightness stems from the reduced availability of above ground stocks,” analysts at Standard Chartered said in a note.
Spot platinum rose 0.5% to $2,710.20 an ounce, after hitting a record high of $2,918.80 on Monday, while palladium fell 1.3% to $2,048.14.