Gold prices stayed above $4,000 an ounce on Thursday as investors reacted to the Israel-Hamas ceasefire deal and continued to favor safe-haven assets amid global economic and geopolitical uncertainty, along with expectations of U.S. interest rate cuts.
Silver also reached the key $50 mark for the first time, driven by gold’s record surge, strong investor demand, and limited supply.
As of 1226 GMT, spot gold was steady at $4,038.59 per ounce, while U.S. gold futures for December delivery slipped 0.3% to $4,057.70. Gold hit a record high of $4,059.05 on Wednesday. Silver climbed 2.2% to $50.01 per ounce, gaining over 73% so far this year.
Analyst Ross Norman noted that silver’s rally is supported by solid fundamentals rather than speculative activity.
The announcement of a ceasefire and hostage deal between Israel and Hamas, part of U.S. President Donald Trump’s Gaza peace plan, has reduced safe-haven demand, though analysts said gold’s overall bullish trend remains intact.
“Gold’s rally is facing resistance as the Gaza diplomatic breakthrough reduces risk-off flows, while the ongoing U.S. dollar recovery undermines bullion’s strength, leaving it vulnerable to pullbacks,” said Nikos Tzabouras, Senior Market Analyst at Tradu. “However, the bullish bias remains intact, and the path to new all-time highs is still wide open.”
The U.S. dollar index hovered near a two-month high, making gold more expensive for foreign buyers. Meanwhile, geopolitical tensions, strong central bank demand, ETF inflows, and expectations of a U.S. rate cut continue to support gold prices, which are up over 53% this year, on track for their biggest annual gain since 1979.
Minutes from the Federal Reserve’s September meeting showed policymakers leaning toward rate cuts amid labor market risks and persistent inflation, with markets expecting reductions in October and December.
Analysts at UBS noted that the ongoing U.S. government shutdown and fiscal concerns in Japan and France have also contributed to gold’s rise.
Non-yielding gold typically benefits from lower interest rates and uncertain global conditions. However, FXTM analyst Lukman Otunuga cautioned that if investor confidence improves, gold could face short-term pressure as funds shift back to riskier assets.
Among other metals, platinum inched up 0.1% to $1,664.30, while palladium rose 1.9% to $1,476.35, its highest level in more than two years.