Thursday 29/January/2026 – 09:21 AM
The pace of investors flocking to safe haven assets has increased in particular gold Amid a state of geopolitical and economic uncertainty, while silver in spot transactions recorded a new record level of $120 per ounce.
By 06:38 GMT, the price of gold in spot transactions rose 3.09% to $5,584.45 per ounce after reaching $5,591.61 earlier, and US gold futures contracts for April delivery rose by 5.11% at $5,613.2.
Government debt burdens and geopolitical concerns
Analysts at OCBC said in a note: Rising government debt burdens, geopolitical concerns, and policy unpredictability have accelerated a re-evaluation of the role of gold in investment portfolios, according to Reuters.
They added: Gold is no longer just a means to hedge against crises or inflation; Rather, it is increasingly viewed as a neutral and reliable asset for storing value and providing diversification across a broader range of macroeconomic systems.
Gold broke the $5,000 barrier for the first time last Monday and has risen by more than 10% so far this week, driven by a combination of factors including strong demand for safe haven assets, strong purchases from central banks, and a decline in the dollar.
As for other precious metals, silver increased 5.78% to $120.22 per ounce, and prices received support from investor demand looking for cheaper alternatives to gold, in addition to supply shortages and buying momentum. The metal has jumped more than 60% so far this year.
IG market analyst Tony Sycamore said: Although the nature of the rise indicates that a decline is not far away, fundamentals are expected to remain supportive throughout 2026, making any declines attractive buying opportunities. Geopolitical tension remains after US President Donald Trump urged Iran, yesterday, Wednesday, to sit at the negotiating table and reach an agreement on nuclear weapons, otherwise the next US attack will be much worse.
US interest rate
On the other hand, the Federal Reserve decided to keep interest rates unchanged yesterday as was widely expected, and traders therefore strengthened their expectations that the US central bank would reduce short-term borrowing costs in June, but not before that.
Fed Chairman Jerome Powell said inflation in December was likely well above the central bank’s 2% target.
Gold, a traditional hedge against uncertainty and inflation, benefits from low interest rates. The price of the non-yielding metal has risen by more than 27% so far this year, after gains of 64% in 2025.
Platinum rose in spot transactions 0.5% to $2,710.20 per ounce after hitting a record level of $2,918.80 on Monday. But palladium fell 1.3% to $2,048.14 per ounce.
