Gold approached the $5,600 level on Thursday as investors flocked to safe-haven assets amid geopolitical and economic uncertainty, while silver jumped to a new record high of $120.
The spot price of gold rose to $5,551.2 per ounce at the time of writing, after reaching $5,595.4 earlier in the day.
April delivery gold futures rose 4.7% to $5,591, after reaching around $5,625.9 during the day’s trading.
Analysts noted: “Rising government debt burdens, geopolitical concerns, and policy unpredictability have accelerated a reassessment of gold’s role in investment portfolios.”
They added, “Gold is no longer just a hedge against crises; it is increasingly viewed as a neutral and reliable store-of-value asset, and it provides diversification across a wider range of macroeconomic systems.”
Gold broke the $5,000 barrier for the first time on Monday and has risen more than 10% so far this week, driven by a combination of factors including strong safe-haven demand, robust central bank purchases, and a weaker dollar.
“A Pullback Is Not Far Off”
A market analyst stated, “Although the nature of the rally suggests a pullback is not far off, fundamentals are expected to remain supportive throughout 2026, making any dips attractive buying opportunities.”
Geopolitical tensions persist after the U.S. President urged – yesterday, Wednesday – to sit at the negotiating table and reach an agreement on nuclear weapons, otherwise the next U.S. attack would be much worse.
Tehran responded by threatening to strike the U.S. and its supporters.
On another note, the Federal Reserve decided to keep interest rates unchanged yesterday, as was widely expected.
Traders reinforced their expectations for a U.S. rate cut to lower short-term borrowing costs in June, but not before then.
The Fed Chair said inflation in December was likely still well above the central bank’s 2% target.
Gold, a traditional hedge against uncertainty and inflation, benefits from low interest rates.
The price of the precious metal – which yields no return – has risen more than 27% so far this year, following gains of 64% in 2025.
Regarding Other Precious Metals
- Silver’s spot price jumped to $120 per ounce for the first time ever, supported by strong demand and buying momentum. The metal has surged more than 60% so far this year.
- Platinum’s spot price rose 0.5% to $2,710.20 per ounce after hitting a record high of $2,918.80 on Monday.
- In contrast, palladium fell 1.3% to $2,048.14 per ounce.
