Gold, silver hit record highs as investors flock to safe havens

KARACHI: Gold, silver and platinum surged to unprecedented levels on Friday, smashing previous records in global markets as investors poured money into precious metals amid economic uncertainty and rising geopolitical tensions.

Market analysts said thin year-end trading volumes, combined with heightened speculation and expectations of further US interest rate cuts, have fueled the sharp rally across the precious metals sector.

Spot gold climbed 0.6 per cent to $4,504.79 an ounce, after touching an all-time high of $4,530.60 earlier in the session. Gold futures for February delivery in the US also advanced, trading 0.7 per cent higher at $4,535.20 an ounce.

Silver posted even stronger gains, with spot prices jumping 3.6 per cent to $74.56 an ounce. During intraday trading, silver reached a historic peak of $75.14 an ounce, underscoring growing investor appetite for the metal.

According to Kelvin Wong, senior market analyst at Oanda, speculative investment has been a major driver of the rally since early December. He noted that a weakening US dollar, expectations of prolonged interest rate cuts, and escalating global geopolitical risks have created ideal conditions for precious metals to thrive.

“Gold and silver are benefiting from a perfect storm of macroeconomic factors,” Wong said, adding that prices could continue to climb in the coming months. He forecast that gold may reach $5,000 an ounce in the first half of 2026, while silver could move closer to the $90 mark.

Platinum also saw a dramatic surge, rising 7.8 per cent to $2,393.40 an ounce after hitting a record high of $2,429.98 during the session. Palladium followed the upward trend, gaining 5.2 per cent to trade at $1,771.14 an ounce.

Analysts attributed the rally in platinum and palladium to tight global supply, strong demand from the automobile industry, and a shift by investors diversifying away from gold into other precious metals.

Experts said all major precious metals are on track to post strong weekly gains, signaling continued momentum as investors seek stability in an increasingly uncertain global economic environment.