Gold prices marched to record levels above $5,100 yesterday, as investors sought a safe haven amid international political tension, and silver and platinum also scaled all-time highs.
Spot gold was up 1.9% at $5,076.43 an ounce by 11:37am ET after hitting a record $5,110.50. US gold futures for February delivery gained 1.9% to $5,074.10.
“Gold prices continue to be supported by elevated geopolitical and economic uncertainty. Central banks remain strong buyers as they diversify foreign exchange reserves and reduce reliance on the US dollar,” said Ryan McIntyre, president at Sprott Inc.
“In addition, investor inflows into physically backed exchange-traded funds have resumed, with holdings up approximately 20% year over year,” McIntyre added.
Adrian Ash, head of research at online marketplace BullionVault said: “A wave of new first-time investing is driving this move in precious metals. It’s led by private investors across Asia and Europe, rushing to build their personal holdings of gold and silver.”
Analysts at Societe Generale anticipate gold will reach $6,000/oz by year-end, though they caution this may be a conservative estimate with scope for further gains. Meanwhile, Morgan Stanley said the rally could continue, highlighting a bull-case target of $5,700.
Spot silver scaled a new record high of $113.61 an ounce. Prices broke the $100 mark on Friday as retail investor and momentum-driven buying added to tightness in physical markets for the precious and industrial metal.
“Momentum is strong, with Chinese silver prices at a notable premium to London prices, indicating further gains in the short term are possible. However, such high prices should reduce industrial demand,” said UBS analyst Giovanni Staunovo.
Spot platinum rose by 3% to $2,849.60 an ounce after touching a record $2,918.80 while spot palladium climbed by 6.2% to $2,135.22, the highest levels since 2022.