Summary: Spot gold pushed higher on Thursday, trading above the $5,400 an ounce threshold as market participants sought the traditional safety of the metal amid heightened geopolitical friction and evolving views on U.S. monetary policy. Other precious metals likewise showed strength or steadiness after recent record moves.
Spot gold XAU= was up 0.3% at $5,413.67 an ounce at 2209 GMT, having earlier touched an all-time high of $5,418.39 in the session. The metal's rise came as investors weighed a series of geopolitical and policy developments that have heightened demand for safe-haven assets.
Geopolitical tensions remained elevated after U.S. President Donald Trump urged Iran on Wednesday to come to the table and make a deal on nuclear weapons or the next U.S. attack would be far worse. Tehran responded with a threat to strike back against the U.S., Israel and those who support them. Those exchanges helped underpin flows into gold as market participants sought protection from heightened uncertainty.
On the policy front, the U.S. Federal Reserve decided to leave rates unchanged on Wednesday, as widely expected. In the wake of the Fed statement, traders increased their expectations that the central bank would cut short-term borrowing costs in June - but not before then. The policy decision was not unanimous: both Governor Christopher Waller, a contender to replace Fed Chair Jerome Powell when his term as central bank chief ends in May, and Governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favor of a quarter-percentage-point rate cut.
Gold, a traditional safe-haven asset, has gained more than 25% so far this year, typically benefiting from a low interest rate environment, after rising 64% in 2025. The persistent climb to new highs this week has also translated into strong retail interest: customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting the price could rise even further.
Other precious metals showed mixed but generally firm performances. Spot silver was steady at $116.61 an ounce after hitting a record high of $117.69 on Monday. Spot platinum rose 0.4% to $2,705.79 an ounce, having reached a record $2,918.80 on Monday, while palladium rose 0.3% to $2,079.32 an ounce.
Market reactions to the combination of geopolitical headlines and central bank signaling appear to have reinforced demand for precious metals as portfolio diversifiers and stores of value. Developments around U.S.-Iran tensions and the timing of potential Fed rate cuts are likely to remain key drivers for metals prices in the near term.
Market snapshot:
- Spot gold: $5,413.67 an ounce at 2209 GMT (up 0.3%) - earlier high $5,418.39
- Spot silver: $116.61 an ounce (steady) - record $117.69 on Monday
- Spot platinum: $2,705.79 an ounce (up 0.4%) - record $2,918.80 on Monday
- Palladium: $2,079.32 an ounce (up 0.3%)