Silver hits record high above USD100/oz as gold closes in on USD5,000 milestone

NEW YORK: Silver prices rose above USD100 an ounce for the first time on Friday, while gold hit another record en route to USD5,000/oz as investors pile into safe-haven assets amid geopolitical turmoil and on expectations for US interest rate cuts.

Spot silver jumped 5percent to USD100.94 an ounce by 1848 GMT. “Silver should continue to benefit from many of the same forces supporting gold investment demand,” said Philip Newman, a director at Metals Focus.

“Additional support will come from ongoing tariff concerns and still low physical liquidity in the London market.” The white metal has surged more than 200percent in the past year, also driven by ongoing challenges in scaling up refining of the metal and a persistent supply shortage in the market.

Spot gold was 0.6percent higher at USD4,964.81 an ounce, after touching a record of USD4,988.17 earlier. US gold futures for February delivery settled 1.4 percent higher at USD4979.70.

“Gold’s role as a haven and a diversifier in highly uncertain economic and political times is making it a necessity for strategic portfolios. It’s more than a perfect storm, which doesn’t last, it’s a sign of fundamentally changing times,” said Tai Wong, an independent metals trader.

Since the start of 2026, friction between the US and NATO over Greenland, concerns about the Federal Reserve’s independence, and continued uncertainty over tariffs have driven a surge in demand for safe-haven assets.

Central bank buying and a broader move away from the dollar have also underpinned gold’s rise. As a non-yielding asset, gold is often favoured during periods of low interest rates. Gold hit significant milestones like USD3,000/oz and USD4,000/oz for the first time last year in March and October respectively, fuelled by US interest rate cuts and conflicts around the world.

Commerzbank said in a note that it expects US rate cuts to accelerate later this year following the appointment of a new Fed chair, a move that should give gold prices a boost again.

Platinum hit a record high of USD2,771.10 an ounce and was last up 4.4percent at USD2,744.40. This metal is attracting investor demand as a cheaper alternative to gold, HSBC said, adding that it expected a structural deficit in this market to widen to 1.2 million ounces this year. Palladium, meanwhile, jumped by 4.1percent to USD1,999.64.