Spot gold extended its blistering rally on Thursday to hit a record high just shy of $5 600 an ounce, as investors sought safety amid geopolitical and economic uncertainties, while silver came within a whisker of breaching the $120 mark.

Spot gold shot up 2.7% to $5 542.29 an ounce by 01:49 GMT, after hitting a record $5 591.61 earlier in the day.

"Growing US debt and uncertainty created by signs that the global trade system is splintering into regional blocs as opposed to a US-centric model (are leading investors to pile into gold)," said Marex analyst Edward Meir.

Prices jumped past the $5 000 mark for the first time on Monday and have gained more than 10% so far this week, driven by a cocktail of factors including strong safe‑haven demand, firm central bank buying and a weaker dollar. [USD/]

"Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral, and a reliable store of value asset that also provides diversification across a wider range of macro regimes," OCBC analysts said in a note.

Gold has gained more than 27% this year following a 64% jump in 2025.

"Although the parabolic nature of the rally suggests a pullback is not far away, the underlying fundamentals are expected to remain supportive throughout 2026, positioning any dips as attractive buying opportunities," IG market analyst Tony Sycamore said.

In geopolitical news, US President Donald Trump urged Iran on Wednesday to come to the table and strike a deal on nuclear weapons, warning that any future US attack would be far more severe. Tehran responded with a threat to strike back against the US, Israel and those who support them.

On the US policy front, the Federal Reserve decided to leave rates unchanged on Wednesday, as widely expected. Fed Chair Jerome Powell said inflation in December was likely still well above the central bank's 2% target.

On Thursday, prices also drew support from crypto group Tether's plans to allocate 10% to 15% of its investment portfolio to physical gold.

Meanwhile, with elevated gold prices, customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting it could rise even further.

Spot silver was up 1.1% at $117.87 an ounce after hitting a record high of $119.34 earlier. Prices have been helped by demand from investors looking for cheaper alternatives to gold, along with supply shortages and momentum buying. The white metal has jumped more than 60% so far this year.

"The silver market is forecast to deliver yet another deficit this year, but the real market tightness stems from the reduced availability of above ground stocks," analysts at Standard Chartered said in a note.

Spot platinum rose 1% to $2 723.40 an ounce, after hitting a record high of $2 918.80 on Monday, while palladium fell 1.6% to $2 041.20.