Silver prices rose above $100 an ounce for the first time on Friday, while gold broke another record on the way to $5,000 an ounce as investors poured into safe-haven assets amid geopolitical turmoil and expectations of a US interest rate cut.
“Silver should continue to benefit from many of the same forces supporting demand for gold,” said Philip Newman, director of Metals Focus. “Additional support will come from ongoing tariff concerns and the still-low physical liquidity in the London market.”
“Traders continued to push for the $100 print and hit the milestone,” Tai Wong, an independent metals trader, told Reuters. “Investors will wait to see whether this can hold till the end or whether there will be profit booking from recent speculators.”
The metal has gained more than 200% in the past year due to ongoing challenges in increasing refining and persistent supply shortages.
Gold prices near $5,000 per ounce
Spot gold rose 0.8% to $4,976.49 an ounce, after hitting a record $4,988.17 earlier. U.S. gold futures for February delivery rose 1.3% to $4,978.60.
“Gold’s role as a haven and diversifier in highly uncertain economic and political times is making it a necessity for strategic portfolios,” Wong said. “This is more than a perfect storm that won’t last, it’s a sign of fundamentally changing times.”
Since the start of 2026, friction between the US and NATO over Greenland, concerns about the independence of the Federal Reserve, and continued uncertainty over tariffs have driven a surge in demand for the safe-haven asset. Bullion prices have surged in the last one year due to central bank buying and move away from the dollar.
On the US policy front, the Fed is expected to keep interest rates steady in its January 27-28 meeting, but the market still expects two more rate cuts in the second half of 2026.
As a non-yielding asset, gold is often preferred during periods of low interest rates. Last year, in March and October, gold touched important milestones like $ 3,000 per ounce and $ 4,000 per ounce for the first time.
