Gold Nears $5,000 While Silver Tops $100 as Investors Flee to Metals

Gold prices approached the $5,000 per ounce mark on Friday, capping the metal’s strongest week since 2020 and underscoring a broader flight to hard assets amid currency concerns and geopolitical tension. February futures on the COMEX settled at $4,983.10, up $69.70, or 1.42%, in late afternoon trading. The contract has risen 14% since the start of the year, extending a multi-month climb fueled by rising demand from both central banks and private investors.

Silver followed an even steeper trajectory, closing above the psychologically significant $100 threshold for the first time on record. Futures for the metal have gained 29% in 2026, outpacing gold and adding momentum to what market participants have labeled “the debasement trade.” Analysts attribute the surge to a combination of a weaker U.S. dollar, expectations of easier monetary policy, and heightened skepticism toward government debt sustainability.

Several factors converged to propel bullion higher. Currency markets have priced in further Federal Reserve rate cuts as inflation moderates and economic growth shows signs of slowing. A softer dollar typically bolsters dollar-denominated commodities by lowering their cost for non-U.S. buyers. At the same time, the federal budget deficit remains elevated, raising questions about long-term fiscal discipline and encouraging diversification away from U.S. government securities.

Those concerns intensified this week when a large Danish pension fund announced plans to divest its holdings of U.S. Treasurys, citing geopolitical uncertainty linked to President Donald Trump’s renewed interest in acquiring Greenland. Separate reports indicated that other major Northern European asset managers are also reassessing exposure to U.S. fixed-income assets, adding to the perception of waning international demand for American debt.

Commodity strategists note that official sector purchases have provided a durable floor for gold. Central banks, particularly in emerging markets, have been accumulating reserves to reduce reliance on the dollar. According to estimates from Goldman Sachs, private investors have increasingly joined that trend during the latest leg higher, expanding the pool of buyers and reinforcing upward price pressure.

Ole Sloth Hansen, head of commodity strategy at Saxo Bank, said in a note that persistent fiscal slippage in Washington has kept demand for gold robust and is likely to do so for the foreseeable future. Hansen’s comments echoed a broader narrative among market observers who view gold as a hedge against both inflation and potential currency debasement.

Silver’s rally has drawn additional attention because roughly half of global supply is consumed for industrial applications ranging from solar panels to electronics. China, the world’s largest manufacturing hub, has reportedly restricted silver exports since early January, opting to stockpile the metal for domestic use. The tighter supply backdrop, together with speculative inflows, has accelerated price gains far beyond most bank forecasts.

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JPMorgan analysts cautioned last week that silver’s parabolic ascent makes it difficult to determine an upper limit. Historical precedent offers mixed signals: in late 1979 and early 1980, rapid price appreciation ended with an equally swift reversal. Bloomberg Intelligence strategist Mike McGlone drew parallels to that period, suggesting momentum could carry futures past $100 but warning that a sharp retracement toward $50 remains possible if sentiment shifts.

The strength in precious metals has spilled over into the broader commodity complex. Platinum futures touched fresh records on Friday and are now up 36% for the year. Copper traded in London climbed above $13,000 per metric ton, supported by supply disruptions and steady demand for energy-transition infrastructure. The synchronized advance reflects a wider move by investors toward tangible assets perceived as relatively insulated from currency volatility and political risk.

Market participants will look to forthcoming economic data and the next Federal Reserve policy meeting for clues on whether the central bank will validate expectations of additional rate cuts. Any indication of looser monetary settings could extend the rally in gold and silver, while signs of hawkish resolve might prompt profit-taking. For now, momentum remains firmly tilted in favor of the bulls, with both metals closing the week at or near their all-time highs.

Crédito da imagem: Reuters