Gold prices surged on Thursday, hovering just below $5,600 an ounce as investors sought safe-haven assets amid geopolitical tensions and economic uncertainty. Spot gold rose 2.7% to $5,546.29 an ounce, after briefly touching a record $5,594.82 earlier in the day. This marks the ninth consecutive session of record highs for the precious metal.
US gold futures for February delivery also climbed 4.5% to $5,539.20, after reaching an all-time high of $5,626.80. Analysts say rising gold prices are driven by safe-haven demand due to political and financial instability, particularly in the United States.
“Gold prices are rising because of geopolitical concerns and uncertainty around the US Federal Reserve,” said ANZ analyst Soni Kumari. Investor trust is shaken amid the criminal investigation into Fed Chair Jerome Powell and attempts to remove Fed Governor Lisa Cook, alongside a looming nomination for Powell’s replacement in May.
Marex analyst Edward Meir added that growing US debt and signs of a shifting global trade system are prompting investors to pile into gold. The metal surpassed $5,000 earlier this week and has gained over 10% so far, fueled by central bank purchases, strong safe-haven demand, and a weaker dollar. Gold has already risen more than 27% this year, following a 64% increase in 2025.
Tensions in the Middle East also contributed to market volatility. US President Donald Trump urged Iran to negotiate on nuclear weapons, warning of stronger retaliation if attacked. Tehran responded with threats toward the US, Israel, and its allies.
High gold prices have led to increased buying in Shanghai and Hong Kong, with investors betting that the rally may continue.
Meanwhile, other precious metals also advanced. Spot silver jumped 1.4% to $118.25 an ounce after reaching a record $120.45. Platinum rose 2.8% to $2,770.49, while palladium climbed 1.6% to $2,107.37. Analysts warn that silver, like gold, may see volatility after the initial frenzy of investor buying.
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Gold remains a key safe-haven asset, attracting strong demand amid global economic and political uncertainty.
