The metal has risen more than 200% in the past year, also due to ongoing challenges in scaling up refining of the metal and an ongoing supply shortage in the market.“Silver should continue to benefit from many of the same forces that support demand for gold investments,” said Philip Newman, director at Metals Focus.
“Additional support will come from ongoing concerns about rates and the still low physical liquidity in the London market.”
Spot gold was 0.48% higher at $4,959.98 an ounce, after hitting a record $4,967.03 earlier in the day. U.S. gold futures for February delivery added 0.98% to $4,961.20.
“Gold’s role as a refuge and diversification tool in highly uncertain economic and political times makes it a necessity for strategic portfolios. More than a perfect storm that won’t last, it is a sign of fundamentally changing times,” said Tai Wong, an independent metals trader. Since early 2026, friction between the US and NATO over Greenland, concerns about the independence of the Federal Reserve and continued uncertainty over rates have led to a surge in demand. for safe haven assets.
Central bank buying and a broader shift away from the dollar have also supported gold’s rise.
On the US policy front, the Fed is expected to keep rates steady at its January 27-28 meeting, but markets still expect two further rate cuts in the second half of 2026.
As a non-yielding asset, gold is often favored during periods of low interest rates.
Spot platinum rose 4.21% to $2,740.25 an ounce.
HSBC said in a note that platinum “is attracting investor demand as a cheaper alternative to gold.”
“We expect the production/consumption deficit to rise to more than 1.2 moz by 2026,” the note said.
Palladium, meanwhile, rose 4.79% to $2,012.11.
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