Gold prices soared to a historic peak above $5,500 an ounce, extending a rapid rally fueled by a weakening US dollar and investor moves away from sovereign bonds and currencies.
The precious metal surged as much as 3.2%, following a 4.6% gain in the previous session — the largest single-day jump since March 2020, at the height of the Covid-19 pandemic. Silver also climbed to an all-time high on Thursday, reflecting broad-based strength across the precious metals sector amid heightened geopolitical uncertainty and growing concerns about the independence of the Federal Reserve.
Traders appeared to look past the Fed’s widely anticipated decision on Wednesday to maintain interest rates. With a new Fed chief expected to succeed Jerome Powell later this year, Rick Rieder of BlackRock Inc., known for supporting more aggressive rate cuts, has emerged as a leading candidate. Markets are increasingly pricing in a dovish shift in US monetary policy, which benefits non-yielding assets like gold and silver.
As of 9:05 a.m. in Singapore, gold was trading 1.1% higher at $5,477.36 an ounce, having earlier reached an all-time high of $5,588.71. Silver rose 0.7% to $117.47 an ounce, while platinum and palladium edged slightly lower. The Bloomberg Dollar Spot Index declined 0.1% on Thursday and fell 1.3% for the week, further supporting the precious metals rally.
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