• Gold prices jump 1.68% to breach $3,390 per ounce, setting another all-time high in 2025.
  • The precious metal has gained over 26% year-to-date, with no closes below $2,000 since February 2024.
  • Rising trade tensions and central bank buying continue to drive the rally, with investors awaiting Fed signals.

Gold's Unstoppable Rally Continues

Spot gold prices soared past $3,390 per ounce on Thursday, marking a 1.68% daily gain and extending what has become a historic bull run for the precious metal. This latest milestone comes amid escalating trade tensions between major economies and persistent demand from central banks diversifying their reserves.

The metal hasn't traded below $2,000 since February 2024 and has more than doubled from its $1,645 level just 2.5 years ago. Market participants attribute the sustained rally to a perfect storm of macroeconomic uncertainty, with recent tariff threats between the U.S., China and Canada particularly driving safe-haven flows.

"What we're seeing isn't just short-term positioning," said one London-based metals trader who asked not to be named. "This is structural buying from institutions and sovereign wealth funds rebuilding their gold allocations after years of underweight positions."

The Fed Factor and Currency Dynamics

A weakening U.S. dollar has provided additional tailwinds, making gold more affordable for international buyers. All eyes now turn to next week's Federal Reserve meeting, where any dovish signals from Chair Jerome Powell could further fuel the rally.

Silver has joined gold's upward trajectory, rising over 1% on the same macroeconomic drivers. In India, festival-related demand has added another layer of support for precious metals broadly.

Traders report heavy options activity around the $3,400 level, suggesting market participants are positioning for even higher prices if current geopolitical and economic uncertainties persist. With central banks continuing their accumulation programs and no immediate resolution in sight for global trade tensions, gold's record-breaking run may still have room to run.