ISLAMABAD: Spot gold extended its powerful rally today and surged to a fresh record just below the $5,600-an-ounce level as investors shifted aggressively into safe-haven assets. Markets reacted to rising geopolitical tensions, economic uncertainty, and concerns about the global financial outlook.
Meanwhile, silver also advanced sharply and traded close to the $120 mark, benefiting from strong spillover demand and growing investor interest.
Rising uncertainty and central bank demand drive gold higher
Spot gold rose 2.7 percent to $5,542.29 an ounce by 0149 GMT after hitting an all-time high of $5,591.61 earlier in the session. Prices broke above the $5,000 level earlier this week and have since gained more than 10 percent. Analysts linked the rally to mounting worries over expanding U.S. debt, weakening confidence in the global trade system, and continued central bank purchases. In addition, the softer U.S. dollar increased gold’s appeal for international buyers.
Marex analyst Edward Meir said investors are moving into gold because uncertainty is growing as the world shifts away from a U.S.-centric trade system toward fragmented regional blocs. OCBC analysts also noted that investors increasingly view gold not just as a crisis hedge but as a reliable store of value that offers diversification across different economic conditions. Gold has now risen more than 27 percent this year after surging 64 percent in 2025.
Geopolitics, policy signals and broader demand support rally
Geopolitical developments further strengthened demand after U.S. President Donald Trump urged Iran to negotiate over its nuclear program, while Tehran issued warnings of retaliation. At the same time, the Federal Reserve kept interest rates unchanged, with Chair Jerome Powell acknowledging that inflation remains above the 2 percent target.
Additional support came from crypto firm Tether’s plan to invest up to 15 percent of its portfolio in physical gold. Retail demand also surged across Asia, with heavy buying reported in Shanghai and Hong Kong. Silver climbed 1.1 percent to $117.87, while platinum edged higher and palladium declined.
