Silver prices rose above $100 an ounce for the first time ever on Friday, while gold hit another record en route to $5,000/ounce as investors pile into safe-haven assets amid geopolitical turmoil and expectations for US interest rate cuts.
“Silver should continue to benefit from many of the same forces supporting gold demand,” said Philip Newman, a director at Metals Focus. “Additional support will come from ongoing tariff concerns and still low physical liquidity in the London market.”
“Traders pushed steadily for and achieved the milestone $100 print,” Tai Wong, an independent metals trader, told Reuters. “Investors will wait to see if it can sustain through close or will there be profit-taking from recent speculators.”
The metal has surged more than 200% in the past one year, driven by ongoing challenges in scaling up refining and persistent supply shortage.
Gold prices near $5,000/ounce
Spot gold was 0.8% higher at $4,976.49 an ounce, after touching a record of $4,988.17 earlier. The US gold futures for February delivery added 1.3% to $4,978.60.
“Gold’s role as a haven and a diversifier in highly uncertain economic and political times is making it a necessity for strategic portfolios,” Wong said. “It’s more than a perfect storm, which doesn’t last, it’s a sign of fundamentally changing times.”
Since the start of 2026, friction between the US and the NATO over Greenland, concerns about the Federal Reserve’s independence, and continued uncertainty over tariffs have driven a surge in demand for safe‑haven assets. Central bank buying and a broader move away from the dollar have also underpinned the bullion surge in the past one year.
On the US policy front, the Fed is expected to hold interest rates steady at its 27-28 January meeting, but markets still expect two further rate cuts in the second half of 2026.
As a non‑yielding asset, gold is often favoured during periods of low interest rates. Gold hit significant milestones like $3,000/ounce and $4,000/ounce for the first time last year in March and October respectively.
