Gold price surpasses $4,900 as record rally carries on

Gold prices broke past the $4,900-an-ounce level for another record high on Thursday after new US economic data raised the chances of Federal Reserve cutting interest rates.

Spot gold rose nearly 2% to set a fresh all-time high of $4,923.63 per ounce, extending its record-breaking rally this year. Silver followed through with a 3% rise of its own, notching a new peak of $96.57 per ounce.

Precious metals started the week on a strong note after US President Donald Trump threatened to impose tariffs on several European powers that opposed his plan to take over Greenland. Both gold and silver hit records in successive trading sessions, as investors piled into safe havens amid heightened geopolitical tensions.

While the fears of a US-Europe trade war somewhat subsided following Trump’s announcement of a “framework” deal for Greenland, the safe-haven metals held relatively steady.

On Thursday, the US released its latest economic data that showed resilience in its jobs market and consumer spending. This reinforced growing expectations of monetary easing later this year, with the market already pricing in two Fed rate cuts in the second half of 2026.

The dollar weakened following the data, making gold more attractive to overseas buyers.

“Gold seems to be responding to the weaker dollar” during US trading, said Bart Melek, global head of commodity strategy at TD Securities.

Further upside

While haven demand for the precious metal eased after the US softened its rhetoric on acquiring Greenland, “if we see a dovish Fed come May, rates may get cut later in the year,” which would support bullion, said Melek.

Earlier, analysts at Goldman Sachs raised their year-end forecast for gold to $5,400 an ounce from $4,900, citing intensifying demand from private investors and central banks.

Risks were “significantly skewed to the upside because private-sector investors may diversify further on lingering global policy uncertainty,” Analysts Daan Struyven and Lina Thomas said in a note Wednesday.

(With files from Bloomberg)