Gold Holds Above $4,000; Silver Surges to Record High

Gold prices remained above $4,000 per ounce on Thursday as investors assessed the Israel-Hamas ceasefire deal, while broader geopolitical and economic uncertainties — along with expectations of U.S. interest rate cuts — continued to support bullish sentiment for the metal.

Amid record-breaking gains in gold, silver climbed to an all-time high, driven by strong investor demand and tightening supply.

As of 1132 GMT, spot gold was steady at $4,038.49 per ounce, while U.S. gold futures for December delivery fell 0.3% to $4,057.80. On Wednesday, gold prices had crossed the $4,000 mark for the first time, reaching a record high of $4,059.05 per ounce.

Silver rose 1.5% to $49.63 per ounce. The metal has surged more than 70% so far this year, benefiting from both gold’s rally and tightness in the physical market.

Independent analyst Ross Norman noted, “The interesting aspect of the silver market is that net long positions are only modestly elevated — this is not a rally driven by speculative interest. There are some solid fundamental factors supporting silver’s price movement.”

U.S. President Donald Trump announced that Israel and Hamas had reached a ceasefire and hostage agreement under the first phase of his plan to end the war in Gaza.

“Diplomatic progress in Gaza has eased safe-haven flows, which is capping gold’s rally,” said Nikos Tzabouras, senior market analyst at Trado. “At the same time, the ongoing recovery in the U.S. dollar is weakening bullion’s strength, leaving it more vulnerable to pullbacks. However, the broader uptrend remains intact, and the path toward fresh all-time highs is still open.”

The U.S. dollar index (.DXY) hovered near a two-month high, making dollar-priced gold more expensive for foreign buyers.

Gold’s momentum has also been supported by geopolitical risks — including the Middle East conflict and the war in Ukraine — as well as strong central bank purchases, ETF inflows, expectations of U.S. rate cuts, and economic uncertainty fueled by trade tariffs.

The metal has gained more than 53% so far this year and is on track for its biggest annual rise since the 1979 oil crisis.

Minutes from the Federal Reserve’s September 16–17 meeting showed policymakers agreed that risks to the U.S. labor market warranted rate cuts, though they remained cautious about persistently high inflation. Markets currently expect 25-basis-point cuts in both October and December, according to FedWatch data.

UBS noted that the ongoing U.S. government shutdown had further accelerated gold trading, while rising fiscal concerns in Japan and France amid recent political leadership changes also supported demand.

Gold, a non-yielding asset, tends to perform well in low-interest-rate environments and during periods of economic or geopolitical uncertainty.

“Should risk sentiment continue to improve, we could see near-term pressure on gold prices as investors shift back toward riskier assets,” said Lukman Otunuga, senior research analyst at FXTM.

Platinum rose 0.1% to $1,663.71, while palladium gained 1.9% to $1,476.76 — its highest level in more than two years.