Gold nears US$5,600/oz as investors seek safety, silver eyes US$120
The white metal has jumped more than 60% so far this year
[BENGALURU] Spot gold extended its record-breaking rally on Thursday (Jan 29), edging closer to the US$5,600-per-ounce level as investors sought safety amid geopolitical and economic strains, while silver came within a whisker of breaching the US$120 mark.
Spot gold was up 2.1 per cent at US$5,511.79 an ounce, as at 8.39 am, after hitting a record US$5,591.61 earlier in the day.
“Rising government debt burdens, geopolitical concerns and policy unpredictability have accelerated a structural re-rating of gold’s role in portfolios,” analysts at OCBC said.
“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.”
Prices jumped past the US$5,000 mark for the first time on Monday and have gained more than 10 per cent so far this week, driven by a cocktail of factors including strong safe-haven demand, firm central bank buying and a weaker US dollar.
“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.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
In geopolitical news, US President Donald Trump urged Iran on Wednesday to come to the table and strike a deal on nuclear weapons, warning that any future US attack would be far more severe. Tehran responded with a threat to strike back against the US, Israel and those who support them.
On the US policy front, the US 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 per cent target.
Gold has gained more than 27 per cent this year following a 64 per cent jump in 2025.
On Thursday, prices also drew support from crypto group Tether’s plans to allocate 10-15 per cent 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.
Spot silver was up 1.3 per cent at US$118.061 an ounce after hitting a record high of US$119.34 earlier. Prices have been helped by demand from investors looking for cheaper alternatives to gold, along with supply shortages and momentum buying. The white metal has jumped more than 60 per cent so far this year.
“The silver market is forecast to deliver yet another deficit this year, but the real market tightness stems from the reduced availability of above ground stocks,” analysts at Standard Chartered said in a note.
Spot platinum rose 0.5 per cent to US$2,710.20 an ounce, after hitting a record high of US$2,918.80 on Monday, while palladium fell 1.3 per cent to US$2,048.14. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
