Spot gold continued its unprecedented ascent on Thursday, approaching the $5,600-per-ounce threshold as investors turned to safe-haven assets in response to geopolitical and economic pressures, while silver nearly surpassed the $120 level. Spot gold increased by 2.1% to $5,511.79 an ounce, as of 0039, following a peak of $5,591.61 earlier in the day. Analysts noted that increasing government debt burdens, geopolitical concerns, and policy unpredictability have expedited a fundamental reassessment of gold’s function within investment portfolios. Gold is no longer merely a crisis hedge or an inflation hedge; it is progressively recognized as a neutral and dependable store of value asset that also offers diversification across a broader spectrum of macroeconomic regimes.
Prices surged beyond the $5,000 threshold for the first time on Monday, reflecting an increase of over 10% this week. This movement can be attributed to a combination of robust safe-haven demand, substantial central bank purchases, and a depreciating dollar. While the parabolic nature of the rally indicates that a pullback may be imminent, the underlying fundamentals are anticipated to continue providing support through 2026, making any declines appealing for potential buyers, according to market analyst Tony Sycamore. In geopolitical developments, U.S. President Donald Trump called on Iran on Wednesday to engage in negotiations regarding nuclear weapons, cautioning that any future U.S. military action would be significantly more intense. Tehran issued a warning of potential retaliatory actions against the U.S., Israel, and their allies.
The Federal Reserve opted to maintain the current interest rates on Wednesday, aligning with prevailing expectations. Fed Chair Jerome Powell indicated that inflation in December was probably still significantly exceeding the central bank’s 2% target. Gold has experienced an increase of over 27% this year, building on a substantial 64% rise in 2025. On Thursday, prices received a boost from Tether’s announcement regarding its intention to allocate 10%-15% of its investment portfolio to physical gold. Meanwhile, with elevated gold prices, consumers have been flocking to stores in Shanghai and Hong Kong that sell the precious metal, with some speculating it could increase even further.
Spot silver increased by 1.3% to $118.061 per ounce following a peak of $119.34 earlier in the session. Prices have been supported by demand from investors seeking more affordable alternatives to gold, coupled with supply shortages and momentum-driven purchasing behavior. The white metal has surged over 60% year-to-date. Analysts at Standard Chartered indicated in a note that the silver market is projected to experience another deficit this year; however, the genuine market tightness arises from the diminished availability of above-ground stocks. Spot platinum increased by 0.5% to $2,710.20 per ounce, following a peak of $2,918.80 on Monday, whereas palladium decreased by 1.3% to $2,048.14.