Gold continued its violent upward trend on Thursday, hitting a new record high of nearly $5,600 an ounce, as investors rushed to safe havens amid escalating geopolitical and economic uncertainty, while silver also approached breaking the $120 level.
Gold rose 3% in spot trading to $5,581 an ounce, after earlier in the session touching a historic high of $5,595.
Meanwhile, futures contracts for the yellow metal rose by about 5% to $5,612 per ounce.
Analyst Edward Meir of Marex said that rising US debt, coupled with uncertainty stemming from signs that the global trading system is breaking up into regional blocs rather than a US-centric model, is driving investors strongly toward gold.
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Gold has become a global store of value
Gold broke above $5,000 an ounce for the first time on Monday and has since gained more than 10% this week alone, driven by a combination of factors including increased demand for safe havens, strong buying from central banks, and a weakening dollar.
OCBC analysts believe that gold is no longer just a tool for hedging against crises or inflation, but is increasingly seen as a neutral and reliable asset for preserving value, as well as an effective means of diversifying portfolios across different macroeconomic environments.
Gold prices have risen by more than 27% since the beginning of the year, after recording a significant jump of 64% during 2025.
The fundamentals are strong despite the potential for a correction.
Analyst Tony Sycamore of IG said the near-vertical nature of the current rally suggests a price correction may be imminent, but the fundamental factors supporting gold are expected to remain strong throughout 2026, making any potential pullback an attractive buying opportunity.
On the geopolitical front, US President Donald Trump on Wednesday called on Iran to return to the negotiating table and reach an agreement on its nuclear program, warning that any future US attack would be far more severe than the strike that targeted Iranian nuclear facilities last year.
Tehran responded with threats to target the United States, Israel, and all those who support them, further escalating tensions and contributing to increased demand for gold as a safe haven.
Investment and consumer demand are supporting the market.
On the monetary policy front, the Federal Reserve decided on Wednesday to keep interest rates unchanged as expected, while Chairman Jerome Powell noted that inflation in December was still well above the target level of 2%.
Gold also received additional support on Thursday after a digital asset group announced plans to allocate between 10% and 15% of its investment portfolio to physical gold.
In Asia, gold shops in Shanghai and Hong Kong saw a surge in customers eager to buy, with some betting that prices could continue to rise in the coming period.
Silver, platinum, and palladium under a microscope
Silver rose 0.6% in spot trading to $117.30 an ounce, after hitting a record high of $119.34 earlier. Silver has benefited from investors seeking cheaper alternatives to gold, as well as supply shortages and momentum-driven buying, pushing its year-to-date gains to over 60%.
Standard Chartered analysts said the silver market is poised to record another deficit this year, but the real tightness in the market is mainly due to the decline in above-ground stockpiles.
Platinum rose 1.6% to $2,739.48 an ounce after hitting a record high of $2,918.80 on Monday, while palladium fell 1.3% to $2,047.0.
