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Gold Holds Above 4000: Gold prices remained steady above $4,000 an ounce on Thursday. Investors took stock of the Israel-Hamas ceasefire deal, even as global tensions and economic uncertainty lingered.
Expectations of U.S. rate cuts continued to support strong optimism for the precious metal. Silver also made headlines, touching the $50 mark for the first time.
The surge came on the back of gold’s record rally, rising investor interest, and an ongoing supply crunch.
Spot gold hovered around $4,038.59 per ounce at 12:26 GMT, showing little change. U.S. gold futures for December delivery slipped 0.3% to $4,057.70.
A day earlier, gold had surged past the $4,000 mark for the first time, setting a new record high of $4,059.05. Silver also extended its rally, rising 2.2% to $50.01 per ounce.
The metal has jumped more than 73% so far this year, driven by the same bullish factors that have lifted gold and a tightening supply in the spot market.
“The silver market stands out for an interesting reason,” said independent analyst Ross Norman.
“Net long positions have risen only slightly, so this surge isn’t fueled by speculation. It’s grounded in solid fundamentals that support silver’s upward move.”
In a separate development, U.S. President Donald Trump confirmed a ceasefire and hostage agreement between Israel and Hamas. The announcement marks the initial stage of his broader plan to end the conflict in Gaza.
“Gold’s upward momentum is facing some pressure,” said Nikos Tzabouras, Senior Market Analyst at Tradu. “The diplomatic breakthrough in Gaza has eased safe-haven demand, and the U.S. dollar’s recovery is limiting bullion’s gains.
This makes gold prone to short-term setbacks.” “Still, the positive trend is intact,” he added. “There’s plenty of room for gold to reach new record highs.”
The U.S. dollar index remained near a two-month peak. This made gold more expensive for buyers outside the U.S.
Gold’s surge is being driven by multiple factors.
Geopolitical tensions, including the Middle East crisis and the war in Ukraine, are fueling safe-haven demand.
Strong central bank purchases, growing ETF inflows, expectations of U.S. rate cuts, and economic uncertainties from tariffs are also supporting the rally.
The metal has climbed more than 53% year-to-date. It is on track for its largest annual gain since the 1979 oil crisis.
Minutes from the Federal Reserve’s September 16–17 meeting showed officials see enough risk in the U.S. job market to consider a rate cut.
Yet, they remain cautious because inflation remains stubborn. Markets currently expect a 25 basis-point reduction in both October and December, according to FEDWATCH.
“The U.S. government shutdown is giving a boost to gold trading,” UBS noted. “Growing fiscal worries in Japan and France, sparked by recent political changes, are adding to the pressure.”
As a non-yielding asset, gold typically shines when interest rates are low. It also gains appeal during times of economic and geopolitical uncertainty.
“If investors grow more confident and risk sentiment strengthens, gold may face near-term declines,” said Lukman Otunuga, senior research analyst at FXTM.
“Money could flow back into riskier assets, weighing on prices.” Platinum inched up 0.1% to $1,664.30. Palladium surged 1.9% to $1,476.35, reaching its highest level in more than two years.
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