Key Moments
- Spot gold climbed to a new record of $5,266.38/oz, while April futures touched $5,297.86/oz.
- Silver and platinum prices rose, with spot silver up 2.8% to $115.25/oz and spot platinum increasing 1.3% to $2,688.23/oz.
- Markets widely expected the Federal Reserve to hold rates at 3.75%, while investors looked to Chair Jerome Powell for signals on future policy.
Safe-Haven Buying Lifts Gold to Historic Levels
Gold extended its strong rally on Wednesday, surging above $5,200 per ounce. Investors bought gold to seek safety amid ongoing geopolitical tensions, policy uncertainty, and a weak U.S. dollar.
Spot gold jumped to $5,266.38/oz, and April futures reached $5,297.86/oz. The metal has gained roughly 20% so far in 2026, building on last year’s strong performance.
Market participants moved toward gold as caution dominated trading before the Federal Reserve policy meeting later in the day. At the same time, elevated risk aversion supported demand for the yellow metal.
Geopolitical and Policy Risks Drive Investor Caution
Safe-haven flows into gold increased after U.S. President Donald Trump said a second armada was headed toward Iran and expressed hope that Tehran would agree to a deal with Washington. These remarks heightened already significant geopolitical concerns.
U.S. policy uncertainty remains a key factor behind gold’s advance this year. Events such as the Venezuela incursion and tensions over Greenland have created a global environment of elevated stress, boosting interest in traditional safe-haven assets like gold.
Dollar Weakness Supports Metals Rally
The U.S. dollar’s downward trend added further momentum to precious metals. The greenback fell to near a four-year low this week, increasing the appeal of dollar-priced commodities.
Meanwhile, Trump signaled on Tuesday that he was not concerned about the weaker dollar, which coincided with even deeper losses in the currency. As a result, both gold and other major precious metals received a boost.
Silver and Platinum Follow Gold Higher
Silver and platinum also rose, staying close to their recent peaks as investors continued rotating into physical assets.
| Metal | Type | Price | Move |
|---|---|---|---|
| Gold | Spot | $5,266.38/oz | Record high |
| Gold | Futures (April) | $5,297.86/oz | Intraday peak |
| Silver | Spot | $115.25/oz | +2.8% |
| Platinum | Spot | $2,688.23/oz | +1.3% |
Spot silver advanced 2.8% to $115.25/oz, while platinum climbed 1.3% to $2,688.23/oz. Both metals remain near record levels.
ANZ analysts noted that strong physical demand in China has benefited silver. Investors there mostly purchase bars and coins, as other channels for metals exposure are limited.
Fed Policy in Focus as Rates Expected Steady
Metals prices rose as markets awaited the conclusion of the two-day Federal Reserve meeting. Analysts widely expected the central bank to keep its benchmark interest rate at 3.75%.
Investors focused on Fed Chair Jerome Powell’s comments regarding the monetary policy outlook, particularly whether he would address pressure from Washington to cut rates aggressively.
Political Pressure on the Fed Raises Concerns
On Tuesday, Trump said he was close to announcing a nominee to replace Powell as Fed chair. He suggested that interest rates would fall once new leadership took over.
Earlier in January, Powell warned that Washington attempted to push the Fed toward rate cuts via a Department of Justice investigation. These remarks intensified worries about the central bank’s independence.
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