Spot gold extended its record rally on Thursday, climbing 2.1% to $5,511.79 an ounce after hitting an all-time high of $5,591.61, as investors sought safety amid geopolitical tensions, heavy government debt and policy uncertainty.
Analysts say gold is undergoing a structural re-rating. “Gold is no longer just a crisis hedge—it is increasingly viewed as a neutral and reliable store of value across different macro regimes,” OCBC said. Prices have jumped more than 10% this week alone, supported by central-bank buying, a weaker dollar and rising safe-haven demand. Gold is now up over 27% this year, following a 64% surge in 2025.
While the rally has been steep, IG’s Tony Sycamore said any pullbacks are likely to be shallow, with fundamentals expected to remain supportive through 2026.
Geopolitical risks remain elevated after sharp U.S.–Iran rhetoric, while the Federal Reserve’s decision to hold rates steady and acknowledge stubborn inflation added further support. Additional buying interest came from Tether’s plan to allocate up to 15% of its portfolio to physical gold.
Silver rose 1.3% to $118.06 an ounce after touching a record $119.34, buoyed by strong investment demand and supply tightness. Platinum edged higher, while palladium eased.
Frequently Asked Questions
Why has gold surged toward $5,600 an ounce?
Gold is benefiting from strong safe-haven demand driven by geopolitical tensions, rising government debt, policy uncertainty, steady central-bank buying and a weaker U.S. dollar.
Is gold still just a crisis or inflation hedge?
No. Analysts say gold is increasingly viewed as a neutral store of value and a long-term diversification asset across different economic and market cycles.
Could there be a correction after such a sharp rally?
A short-term pullback is possible due to the rapid, “parabolic” rise, but analysts expect underlying fundamentals to remain supportive through 2026, making dips potential buying opportunities
Why is silver also rising sharply?
Silver is gaining from investor demand for a cheaper alternative to gold, ongoing supply shortages and strong momentum buying. Prices are up more than 60% this year.
What role are central banks and institutions playing?
Central banks continue to buy gold as part of reserve diversification, while institutions—such as crypto firm Tether—are increasing allocations to physical gold, reinforcing long-term demand.
