Gold prices pushed higher this afternoon after breaking through the $5,000 per ounce milestone for the first time in the previous session, as persistent economic and geopolitical uncertainty drove investors to the safe-haven metal.
Spot gold was up 1.3% to $5,079.62 per ounce this afternoon after it hit an all-time high of $5,110.50 yesterday before closing at $5,014.29.
U.S. gold futures for February delivery were down 0.1% to $5,075 per ounce.
Gold already has surged 18% so far this year, building on last year's record rally and driven by a combination of factors, including rising geopolitical and economic uncertainty, expectations of US interest rate cuts, and increased central bank purchases amid a global de-dollarization trend.
"Rallies normally end because the drivers that took people into the gold market originally dissipate - and that's just not the case," said Michael Widmer, commodities strategist at Bank of America.
Concerns mounted as US President Donald Trump announced plans yesterday to impose new tariffs on South Korean imports, while the risk of a partial US government shutdown loomed ahead of the January 30 funding deadline.
Markets are now focused on the Federal Reserve's two-day policy meeting, which starts today. The US central bank is widely expected to leave interest rates unchanged after the end of the meeting.
Investors will be watching Fed Chair Jerome Powell's post-meeting press conference on Wednesday amid rising concerns over the central bank's independence.
Meanwhile, Deutsche Bank and Societe Generale now forecast gold prices to reach $6,000 per ounce by 2026.
Spot silver jumped 5.7% to $109.80 an ounce after hitting a record high of $117.69 yesterday. It has already surged more than 50% so far this year, after recording a 146% gain last year.
"There's going to be a lot of volatility ahead, with risks of sharp pullbacks (in silver)," said Bank of America's Widmer, who added that although strong fundamentals and exchange-traded fund inflows could support a $170 price target.
Citi upgraded its short-term silver price forecast to $150 per ounce, from $100 per ounce earlier.
Spot platinum fell 4.5% to $2,632.87 per ounce after hitting a record $2,918.80 in the previous session, while palladium was down 2.4% to $1,935.
