GOLD surged to a record above $4,967 an ounce on Friday, supported by a weaker dollar and mounting geopolitical tensions, whilst silver climbed to an all-time high just below $100.
The precious metals rally has been fuelled by US President Donald Trump’s attacks on Federal Reserve independence, military intervention in Venezuela and threats to annex Greenland, said Bloomberg News today. A key gauge of the dollar was heading for its weakest week in seven months, making bullion cheaper for most buyers.
“Gold is undergoing a sustained re-rating as cracks appear in the post-World War II rules-based order,” said Yuxuan Tang, head of macro strategy in Asia at JP Morgan Private Bank. He added that investors increasingly view gold as protection against regime-shift risks.
Following its strongest annual performance since 1979, bullion has gained a further 15% in early 2025, tracking a weekly advance of nearly eight percent. Goldman Sachs raised its year-end forecast to $5,400 from $4,900, citing intensifying demand from private investors and central banks, said the newswire.
Poland, the world’s top reported gold buyer, approved plans this week to purchase another 150 tons as a geopolitical hedge. India’s holdings of US Treasuries have fallen to a five-year low as gold takes a larger share.
Markets are awaiting Trump’s pick for Fed chair after he said he has finished interviewing candidates. Attention is also focused on talks between Russian President Vladimir Putin and US envoys about ending the war in Ukraine.
Silver has more than tripled over the past year, boosted by a short squeeze and retail buying that left banks scrambling to meet demand.
