Gold Eyes $5,600 as Safe-Haven Frenzy Intensifies; Silver Breaks $120 Barrier

Gold prices surged to unprecedented levels on Thursday, breaching the $5,600-per-ounce threshold as investors sought shelter from escalating geopolitical conflicts and profound systemic economic anxieties. Silver joined the rally, shattering the $120 mark in a parallel surge of safe-haven and momentum buying.

Market Performance

• Gold: Spot gold jumped 3% to $5,560.07 per ounce by 0557 GMT, after peaking at a historic $5,594.82 earlier in the session. The precious metal has notched record highs for nine consecutive trading days.

• Silver: Spot silver rose 1.4% to $118.25 per ounce, after catapulting to a record $120.45. The white metal has soared over 60% year-to-date in 2026.

• Platinum Group: Platinum gained 2.8% to $2,770.49, following its own record of $2,918.80 set on Monday. Palladium advanced 1.6% to $2,107.37.

Drivers of the Rally: A Perfect Storm

Analysts point to a confluence of structural, political, and financial factors fueling the historic ascent:

1. Crisis of Confidence in Financial Systems: Growing fears over the independence of the U.S. Federal Reserve are a primary catalyst. The Trump administration’s criminal probe into Chair Jerome Powell, attempts to oust Governor Lisa Cook, and the looming nomination of Powell’s successor in May have severely rattled investor trust.

2. Geopolitical Powder Keg: Tensions in the Middle East reached a new crescendo. U.S. President Donald Trump’s public warning to Iran to negotiate a nuclear deal—paired with a threat of severe military action—drew an immediate vow of retaliation from Tehran against the U.S., Israel, and their allies.

3. Macroeconomic Fractures: Underlying the immediate crises are deeper worries about unsustainable U.S. debt levels and the fragmentation of the global trade order into competing blocs, diminishing the dominance of the U.S.-centric model.

4. Supportive Market Dynamics: These fears have dovetailed with relentless central bank purchasing, a softening U.S. dollar, and significant momentum buying to create a powerful upward vortex for prices.

Sustained Momentum and Future Outlook

Gold has advanced more than 27% in 2026, building on a staggering 64% gain in 2025. The blistering pace has analysts warning of a near-term correction while remaining structurally bullish.

“Although the parabolic nature of the rally suggests a pullback is not far away, the underlying fundamentals are expected to remain supportive throughout 2026, positioning any dips as attractive buying opportunities,” said IG market analyst Tony Sycamore.

The Fed’s decision to hold rates steady on Wednesday, coupled with Powell’s acknowledgment of stubbornly high inflation, did little to assuage concerns about prolonged economic instability.

Physical Market Frenzy

The record prices have triggered a wave of activity in physical markets. From Shanghai to Hong Kong, retail customers and institutional investors are flocking to precious metal traders, with many anticipating further gains. Silver, in particular, is benefiting as a more accessible alternative to gold, amplified by its own supply constraints and soaring industrial demand.

Analyst Commentary:

• Soni Kumari, ANZ: “Gold prices are rising on safe-haven demand because of the strange geopolitical situation and even the political situation in the US… When investor trust in the financial system gets shaken up, gold is the ultimate refuge.”

• Edward Meir, Marex: “Growing US debt and uncertainty created by signs that the global trade system is splintering… are leading investors to pile into gold.”

As the pillars of global stability appear increasingly fragile, the flight to precious metals signals a profound shift in investor sentiment, with gold and silver establishing new paradigms for value in an uncertain age.

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