Gold Nears $5,600 as Investors Flee to Safety; Silver Breaks $120

Gold prices surged on Thursday, hovering just below the $5,600 mark as investors flocked to safe-haven assets amid mounting geopolitical and economic uncertainty. Silver also rallied sharply, breaking above $120 an ounce.

Spot gold climbed 3% to $5,560.07 an ounce by 0557 GMT, after touching a fresh all-time high of $5,594.82 earlier in the session. The precious metal has now logged record highs for nine consecutive sessions.

Analysts point to intensifying geopolitical tensions, U.S. political uncertainty, and concerns over the Federal Reserve’s independence as key drivers of the rally.

Investors remain uneasy following reports of a criminal investigation into Fed Chair Jerome Powell, attempts to remove Fed Governor Lisa Cook, and the upcoming nomination of Powell’s successor in May.

Adding to the momentum, rising U.S. debt levels and signs that the global trade system is fragmenting into regional blocs have further strengthened gold’s appeal as a store of value.

Gold crossed the $5,000 threshold for the first time earlier this week and has gained more than 10% so far, supported by robust safe-haven demand, sustained central bank buying, and a weaker U.S. dollar.