Spot gold on Thursday hit a record high just shy of $5,600 an ounce (₹5.15 lakh), as investors sought safety amid mounting geopolitical and economic uncertainties, while silver came within a whisker of breaching the $120 mark.
Spot gold surged 2.7 percent to $5,542.29 an ounce (₹5.10 lakh), after touching a fresh all-time high of $5,591.61 (₹5.15 lakh) earlier in the day. The yellow metal crossed the $5,000 level (around ₹4.60 lakh) for the first time earlier this week and has climbed more than 10 percent so far this week.
Silver prices also remained firm. Spot silver climbed 1.3 percent to $118.061 an ounce (around ₹10,865), after hitting a record high of $119.34 (about ₹10,980) earlier in the session. Silver has surged more than 60 percent so far this year, significantly outperforming gold and most other commodities.
Gold’s strong momentum has been fuelled by sustained safe-haven demand, steady central bank buying and a softer US dollar. On Wednesday, the US Federal Reserve kept interest rates unchanged, in line with expectations. Fed chair Jerome Powell said inflation in December was likely still well above the central bank’s 2 percent target, keeping uncertainty alive over the pace and timing of future rate cuts.
Geopolitical tensions have further lifted investor demand for precious metals. US president Donald Trump called on Iran to resume talks on nuclear weapons, warning that any future US military action would be significantly harsher. Iran, in response, warned of retaliatory strikes against the US, Israel and their allies.
Gold prices also found support after crypto firm Tether announced plans to invest 10–15 percent of its portfolio in physical gold.
Silver’s rally has been driven by rising investor interest in cheaper alternatives to gold, persistent supply constraints and strong momentum buying.
Analysts said the silver market is expected to post another supply deficit this year, with reduced availability of above-ground stocks tightening market conditions.
Meanwhile, Aamir Makda, commodity and currency analyst at Choice Broking, cautioned that while the broader trend remains bullish, technical indicators suggest investors should be careful at current levels.
Makda expects a moderately bullish trend in gold and silver in the near term, while warning of potential short-term corrections after the sharp rally.
(By arrangement with livemint.com)