Gold, silver and platinum extend record‑setting rally

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An employee uses a hammer to clean a gold ingot during the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018 — REUTERS/File Photo
An employee uses a hammer to clean a gold ingot during the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018 — REUTERS/File Photo

Gold notched another record high on Friday, while silver and platinum also extended gains to hit all-time peaks, powered by diminishing confidence in US assets on account of geopolitical tensions and economic uncertainty.

On Jan 1, the 10-gram and one-tola gold rates stood at Rs234,568 and Rs273,600, based on the global gold rate of $2,624 per ounce.

Today, spot gold was up 0.4 per cent at $4,957.10 per ounce, as of 05:36 GMT (10:36am PKT), after scaling a record $4,966.59 earlier in the day.

US gold futures for February delivery added 0.9pc to $4,958.30 per ounce.

“Faith in the US and its assets has been shaken, maybe permanently, and this is driving money into precious metals. So the word ‘rupture’ has been thrown around. I don’t think that’s an exaggeration,” said Kyle Rodda, a senior market analyst at Capital.com.

The dollar index hovered near a more than two-week low on Friday, having fallen 1pc over the course of the week, making greenback-priced metals cheaper for overseas buyers, while Wall Street’s main indexes saw a sharp sell-off earlier in the week as investors were spooked by fresh tariff threats from US President Donald Trump on the EU, before recovering.

EU leaders heaved a sigh of relief over Trump’s U-turn on Greenland as they met for an emergency summit in Brussels late on Thursday while issuing a warning that they were ready to act if Trump threatens them again.

The US president for his part said he had secured total and permanent US access to Greenland in a deal with Nato.

The details of any agreement remain unclear and Denmark insisted its sovereignty over the island isn’t up for discussion.

Spot silver surged 2.8pc to $98.87 an ounce, after hitting a record high of $99.34 earlier.

“The underlying story to silver is one about the outperformance of silver versus gold and its industrial applications,” Rodda added.

Markets anticipate the US central bank will deliver two quarter-percentage point rate cuts in the latter half of 2026, raising non-yielding gold’s appeal.

Spot platinum gained 0.8pc to $2,650.90 per ounce after hitting a record $2,684.43 earlier, while palladium lost 0.6pc to $1,908.02.

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