Gold Breaks $4,900 Barrier as Precious Metals Rally Intensifies
In a historic surge, gold prices have vaulted past the $4,900 per ounce mark for the first time ever, while silver and platinum extended their record-setting rallies on Thursday. This remarkable ascent in precious metals is fueled by a confluence of macroeconomic factors, including ongoing geopolitical uncertainties, a softening US dollar, and growing expectations of interest rate cuts by the Federal Reserve later this year.
Gold's Unprecedented Climb and Market Drivers
Spot gold reached a staggering peak of $4,917.65 per ounce, as recorded at 01:51 p.m. ET (18:51 GMT). Meanwhile, US gold futures for February delivery settled 1.6% higher at $4,913.4 per ounce. The US dollar's decline of 0.4% further enhanced the appeal of dollar-denominated bullion for international investors, making it more affordable and attractive.
Peter Grant, vice president and senior metals strategist at Zaner Metals, highlighted the underlying trends: "Geopolitical tensions, generally weak dollar, expectations for the Fed easing this year are all factors that are part and parcel of the macro de-dollarisation trend and are still impacting the demand for gold."
Recent geopolitical developments have added to the market's nervousness. US President Donald Trump announced securing total and permanent US access to Greenland through a NATO deal, with NATO's head emphasizing the need for allies to bolster Arctic security against threats from Russia and China. However, Denmark has firmly asserted that its sovereignty over Greenland remains non-negotiable, leaving the specifics of any agreement unclear.
Economic Indicators and Rate Cut Expectations
On the economic front, the latest US Personal Consumption Expenditures (PCE) report revealed robust consumer spending in November and October, signaling a third consecutive quarter of strong growth. Despite this economic resilience, markets are widely anticipating that the US central bank will implement two quarter-percentage point rate cuts in the latter half of 2026. Such monetary easing typically boosts the allure of non-yielding assets like gold, as lower interest rates reduce the opportunity cost of holding them.
Grant further elaborated on gold's outlook: "Short-term setbacks will be viewed as buying opportunities for gold. We have been seeing the $5,000 per ounce level nearby and beyond that Fibonacci projection of $5,187.79 per ounce looks plausible."
Silver and Platinum Join the Record-Breaking Rally
The rally was not confined to gold alone. Spot silver soared to an all-time high of $96.58 per ounce, driven by its own compelling fundamentals. Nikos Tzabouras, senior market analyst at Tradu, noted: "Silver has a far more compelling fundamental narrative than gold. Maybe it's not a reserve asset in the way that gold is, but it still benefits from safe-haven flows, and dollar weakness."
Similarly, spot platinum surged 4.6% to a record high of $2,601.03 per ounce, while palladium also gained 3.3% to reach $1,900.59. This broad-based strength across precious metals underscores a significant shift in investor sentiment towards safe-haven assets amid global uncertainties.
The sustained momentum in gold, silver, and platinum prices reflects a deepening trend of de-dollarization and heightened demand for tangible assets. As geopolitical tensions persist and monetary policy expectations evolve, the precious metals market is poised for continued volatility and potential further gains, with analysts closely monitoring key resistance levels and macroeconomic indicators.
