Gold surged to a record high just above $5,600 an ounce on Thursday as investors fled to safe-haven assets amid mounting geopolitical tensions and economic uncertainty, while silver approached $120 in a rally that has added more than $1.6 trillion to the precious metal's market value in a single day.
What Happened: Record Gold Rally
The yellow metal shot up 2.6% to $5,609 an ounce by 0349 GMT. It has gained more than 10% this week alone.
Gold crossed $5,000 for the first time on Monday. The rally has been fueled by strong safe-haven demand, continued central bank purchases and a weakening dollar.
Silver rose 0.6% to $117.30 after hitting a record $119.34 earlier. The white metal has jumped more than 60% this year.
Spot platinum climbed 1.6% to $2,739.48 after reaching a record $2,918.80 on Monday, while palladium fell 1.3% to $2,047.0.
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Why It Matters: Shifting Investment Landscape
"Growing U.S. debt and uncertainty created by signs that the global trade system is splintering into regional blocs as opposed to a U.S.-centric model (are leading investors to pile into gold)," said Marex analyst Edward Meir.
OCBC analysts noted that 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."
The gains come as Bitcoin (BTC) has fallen behind. Gold has now outperformed the cryptocurrency over the past five years, rising 173% compared to Bitcoin's 164%.
Sentiment gauges reflect the divergence. The Crypto Fear & Greed Index stands at 26 out of 100, in fear territory, while JM Bullion's gold index reads 99 out of 100, signaling extreme greed.
IG market analyst Tony Sycamore said that while the parabolic rally suggests a pullback may be near, "the underlying fundamentals are expected to remain supportive throughout 2026, positioning any dips as attractive buying opportunities."
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