Gold Prices Exceed $5000 an Ounce Amid Market Shifts
Gold prices continued their upward trajectory on Wednesday, climbing over 2% to reach $5044.74 an ounce in spot transactions, following a notable increase earlier this week.
U.S. gold futures rose by 2.7% to $5067 an ounce, as investors anticipate potential interest rate cuts from the Federal Reserve in 2026.
This surge is largely attributed to increased buying activity, as investors seek bargains, alongside a decline in the dollar against major currencies, which enhances gold's status as a safe haven asset.
Gold experienced its best daily performance since 2008 after a remarkable 5.9% increase on Tuesday, reaching a record high of $5594.82 last Thursday.
Other precious metals also recorded significant gains, with silver rising 3.2% to $87.84 an ounce, following a peak of $121.64 last week. Platinum increased by 2.3% to $2260.50, and palladium climbed 3% to $1782.85 an ounce.
Geopolitical tensions, particularly between the United States and Iran, are contributing to the momentum in precious metals. This follows the U.S. military's downing of an Iranian drone that approached the aircraft carrier Abraham Lincoln in the Arabian Sea.
Meanwhile, nuclear negotiations between the two nations are scheduled to take place in Oman on Friday.
On the economic front, President Donald Trump recently signed a spending agreement that ended a partial government shutdown, as investors await private job data from ADP for insights into future Federal Reserve policy.
A decrease in interest rates typically boosts the attractiveness of gold, which does not generate yield.
