Gold rises above $5,500 per ounce to record high

Gold has surged to a historical high above $5,500 an ounce as a result of an endless spell driven by investors rushing towards safe-haven metal amid ongoing geopolitical and economic uncertainties.

It was also reported that following suit, spot silver also climbed to an all-time high during this period, rising 1.5% to settle at $118.36 an ounce.

As of 2343 GMT on Thursday, spot gold jumped by 2.9% at $5,554.76 per ounce, after an earlier ascent to $5,591.61.

It must be noted that gold prices crossed the $5,000 threshold for the first time on Monday and have since gained over $500 in just four sessions, Reuters repored.

"The gains are fuelled by sustained central bank buying, relentless momentum from trend-following funds, and strong flight-to-quality demand," noted IG market analyst Tony Sycamore.

"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," he added.

As anticipated, the U.S. Federal Reserve kept interest rates unchanged. Shortly after the announcement, traders increased their bets on a potential rate cut in June.

So far in 2026, the gold rate has increased by over 25%, following a 64% rise in 2025.

With prices touching new highs, investors are flocking to stores in Shanghai and Hong Kong, betting on further increases.