Precious metals—gold, silver, and platinum—all reached record highs on Friday, driven by concerns over US economic and geopolitical stability. Spot gold reached $4,966.59 per ounce before settling at $4,957.10, a 0.4 percent increase. US gold futures for February delivery also rose, adding 0.9 percent to $4,958.30 per ounce.
Geopolitical Factors and Market Response
The surge in precious metal prices coincides with heightened uncertainty surrounding US policy. Fresh tariff threats from US President Donald Trump against the European Union initially spooked Wall Street, leading to a sell-off, though markets later recovered. A situation involving Greenland also contributed to the unease, with President Trump claiming a deal securing US access through NATO, a claim disputed by Denmark.
The dollar index’s decline to a more than two-week low further fueled the rise in metal prices, making them more affordable for international buyers. Silver also experienced significant gains, surging 2.8 percent to $98.87 an ounce after reaching a peak of $99.34. Platinum followed suit, increasing 0.8 percent to $2,650.90 per ounce, after hitting a record $2,684.43. Palladium, however, saw a slight decrease, falling 0.6 percent to $1,908.02.
Analyst Perspective
Kyle Rodda, a senior market analyst at Capital.com, stated, “Faith in the US and its assets has been shaken, maybe permanently, and this is driving money into precious metals. So the word ‘rupture’ has been thrown around. I don’t think that’s an exaggeration.” Rodda also noted that silver’s performance is linked to both its outperformance relative to gold and its industrial applications.
Anticipation of potential rate cuts by the US central bank in the latter half of 2026 is also contributing to gold’s appeal, as lower rates typically increase the attractiveness of non-yielding assets.
Looking Ahead
If geopolitical tensions persist or escalate, a further influx of investment into precious metals is possible. Should the US central bank proceed with the anticipated rate cuts, this could further bolster gold’s position as a safe-haven asset. Conversely, a de-escalation of trade disputes and a stabilization of the dollar could moderate the upward pressure on these markets. A continued decline in the dollar could also lead to further gains for metals priced in US currency.
Frequently Asked Questions
What drove the price of gold to a record high?
Diminishing confidence in US assets, fueled by geopolitical tensions and economic uncertainty, drove the price of gold to a record high.
How did silver and platinum perform on Friday?
Both silver and platinum reached all-time peaks on Friday, with silver surging 2.8 percent to $98.87 an ounce and platinum gaining 0.8 percent to $2,650.90 per ounce.
What is the outlook for US interest rates?
Markets anticipate the US central bank will deliver two quarter-percentage point rate cuts in the latter half of 2026.
How might shifting global economic conditions impact the value of precious metals in the coming months?
