Gold continued its powerful rally on Thursday, trading just below the $5,600 per ounce level as investors rushed toward safe-haven assets amid rising geopolitical and economic uncertainty. Silver also extended gains, breaking above the $120 mark.
Spot gold climbed 3% to $5,560.07 per ounce by early European trading, after touching a fresh record high of $5,594.82 earlier in the session. The precious metal has now posted record highs for nine consecutive trading days.
Analysts pointed to heightened demand for safety as a key driver of the rally. Concerns over global geopolitical tensions, political uncertainty in the United States, and questions surrounding the independence of the Federal Reserve have shaken investor confidence in traditional financial markets.
Market anxiety has intensified following a criminal investigation launched by the Trump administration into Fed Chair Jerome Powell, attempts to remove Fed Governor Lisa Cook, and speculation surrounding Powell’s potential replacement later this year.
Additional support for gold has come from growing worries over rising U.S. government debt and signs that the global trade system is fragmenting into regional blocs rather than remaining centered on the U.S. dollar. These factors have pushed investors to increase allocations to gold as a store of value.
Gold surged above the $5,000 level for the first time earlier this week and has risen more than 10% so far this week alone. The rally has been fueled by strong safe-haven inflows, steady central bank purchases, and a weaker U.S. dollar. Year-to-date, gold is up more than 27%, following a sharp 64% gain in 2025.
Despite the steep, near-parabolic rise in prices, analysts say the underlying fundamentals remain supportive. While a short-term pullback cannot be ruled out, expectations for sustained demand through 2026 suggest any dips may attract fresh buying interest.
Geopolitical tensions also escalated after U.S. President Donald Trump urged Iran to resume negotiations over its nuclear program, warning that future military action would be far more severe than previous strikes. Tehran responded by threatening retaliation against the United States, Israel, and their allies.
Meanwhile, the Fed kept interest rates unchanged, as widely expected. Powell reiterated that inflation remains above the central bank’s 2% target, reinforcing the cautious policy outlook.
High gold prices have sparked increased activity at precious metals dealers in Shanghai and Hong Kong, where buyers continue to speculate that prices could climb even higher.
Silver also remained in focus, rising 1.4% to $118.25 per ounce after briefly hitting a record high of $120.45. Strong investment demand for cheaper alternatives to gold, tight supply conditions, and momentum buying have pushed silver up more than 60% so far in 2026.
Elsewhere in the metals market, platinum advanced 2.8% to $2,770.49 per ounce after reaching a record earlier this week, while palladium gained 1.6% to $2,107.37.
