Gold continued its unprecedented rally on Thursday, poised to achieve its strongest monthly performance since 1973. Increasing economic and geopolitical uncertainty has prompted investors to seek stability in precious metals, resulting in spot silver reaching a record price above $120 per ounce.
As of 08:52 a.m. ET (1352 GMT), spot gold traded 2.1% higher at $5,514.03 per ounce, following an earlier peak of $5,594.82. Gold has appreciated by more than 28% this month. U.S. gold futures for February delivery advanced 3.8% to $5,508.40.
Market demand for gold is expanding across sectors, ranging from cryptocurrency participants to central banks. Brian Lan, Managing Director of Gold Silver Central, commented that “precious metals are attracting considerable attention, as investors consistently pursue opportunities for substantial returns.”
On Wednesday, Tether’s Chief Executive Officer indicated plans to allocate 10%-15% of the company’s investment portfolio to physical gold. Concurrently, the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported holdings at their highest level in nearly four years.
Heightened geopolitical tensions also contributed to investor caution. On Wednesday, U.S. President Donald Trump urged Iran to enter nuclear negotiations, while Tehran threatened potential retaliation against the United States, Israel, and allied nations.
The U.S. Federal Reserve maintained interest rates on Wednesday. Market participants now await President Trump’s selection for Federal Reserve Chair, succeeding Jerome Powell, whose term concludes in May; expectations indicate the central bank may lower rates in June.
Spot silver rose 2.3% to $119.24 per ounce after reaching $120.44. The metal has increased approximately 64% year-to-date, driven by supply shortages and momentum-based investment.
According to Guy Wolf, Global Head of Market Analytics at Marex, silver, platinum, and palladium markets remain relatively small in comparison to gold and the S&P 500, making them susceptible to speculative inflows that have resulted in prices diverging significantly from underlying physical demand.
Spot platinum recorded a gain of 3.2% to $2,782.54 per ounce, after hitting a historic high of $2,918.80 on Monday. Palladium was up 0.2% at $2,077.83.
