Gold nears $5,600 as investors seek safety

Gold extended its blistering rally on Thursday to hit a record just shy of $5,600 an ounce, as investors sought safety amid geopolitical and economic uncertainties, while silver came within a whisker of breaching $120.

Spot gold shot up 2.6 percent to $5,538.69 an ounce by 0349 GMT, after hitting a record $5,591.61 earlier in the day.

"Growing US debt and uncertainty created by signs that the global trade system is splintering into regional blocs as opposed to a US-centric model (are leading investors to pile into gold)," said Marex analyst Edward Meir.

The yellow metal jumped past the $5,000 mark for the first time on Monday and has gained more than 10 percent so far this week, driven by a cocktail of factors including strong safe‑haven demand, firm central bank buying and a weaker dollar.

"Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral, and a reliable store of value asset that also provides diversification across a wider range of macro regimes," OCBC analysts said in a note.

Gold has gained more than 27 percent this year following a 64 percent jump in 2025.

"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," IG market analyst Tony Sycamore said.

In geopolitical news, US President Donald Trump urged Iran on Wednesday to come to the table and strike a deal on nuclear weapons. He warned that any future US attack would be far more severe than the one last year when Iranian nuclear sites were struck.

Tehran responded with a threat to strike back against the US, Israel and those who support them.

Meanwhile, the Federal Reserve decided to leave rates unchanged on Wednesday, as widely expected. Fed Chair Jerome Powell said inflation in December was likely still well above the central bank's 2 percent target.

On Thursday, the precious metal also drew support from crypto group 's plans to allocate 10 percent–15 percent of its investment portfolio to physical gold.

Meanwhile, with elevated gold prices, customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting it could rise even further.