On Thursday, gold prices surpassed the $4,900 per ounce threshold, marking an unprecedented high. This rally was fueled by persistent geopolitical tensions, a decline in the U.S. dollar, and market speculation about potential Federal Reserve interest rate decreases. As of 12:50 p.m. ET (17:50 GMT), spot gold hit a record $4,904.66 per ounce, while U.S. gold futures for February delivery were trading 1.2% higher at $4,896.20 per ounce.
The U.S. dollar experienced a 0.4% decrease, which enhanced the attractiveness of dollar-denominated bullion to buyers outside the United States. Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that these elements—geopolitical instability, a subdued dollar, and expectations for easing monetary policy—contribute collectively to a broader macroeconomic trend of de-dollarisation, sustaining strong demand for gold.
Recent developments include statements from U.S. President Donald Trump, who claimed to have secured full and permanent U.S. access to Greenland in coordination with NATO. NATO's Secretary General emphasized the need for allied nations to amplify their commitment to Arctic security to counter threats perceived from Russia and China. However, specifics of any agreement remain unclear, as Denmark reaffirmed its sovereignty over Greenland.
Economic data released shows that U.S. consumer spending, as measured by the Personal Consumption Expenditures (PCE) index, increased during October and November, marking the third consecutive quarter of robust growth. This economic backdrop leads markets to forecast that the Federal Reserve may implement two 25 basis point interest rate cuts later this year, enhancing gold's appeal as a non-yielding asset.
Grant suggested that short-term declines in gold prices would likely be perceived as buying opportunities. He indicated that the $5,000 per ounce level is achievable in the near term, with the subsequent Fibonacci projection of $5,187.79 per ounce remaining a plausible target.
Alongside gold's ascent, other precious metals have maintained their upward momentum. Spot silver increased by 3.5% to $96.45 per ounce, close to its record peak of $96.51 earlier in the day. Nikos Tzabouras, senior market analyst at Tradu, emphasized that although silver is not traditionally a reserve asset like gold, it benefits from safe-haven demand and weakness in the dollar.
Spot platinum surged nearly 4% to $2,580.10 per ounce after reaching an all-time high of $2,583.21 within the session. Palladium also advanced, climbing 2.9% to $1,892.55 per ounce, continuing the trend of strength across precious metals markets.