New Delhi: Gold prices soared to a record high on Friday, with bullion climbing as much as 1.2% to $4,379.93 per ounce, as investors rushed to safe-haven assets amid growing concerns about credit quality in the US economy and rising trade frictions between Washington and Beijing.

The rally pushed gold’s market capitalisation past $30 trillion, setting it on track for its biggest weekly gain since 2008, continuing a dramatic upswing that began in August.

Silver, palladium and platinum follow suit

Silver also hit an all-time high, touching $54.3775 per ounce on Friday before easing slightly. Meanwhile, palladium and platinum were on course for significant weekly gains, buoyed by the same investor sentiment driving gold’s rise.

Why are gold prices rising?

Analysts attribute the surge to a mix of economic, geopolitical, and monetary factors, including:

  • Credit fears in the US: Two regional US lenders recently revealed issues with fraudulent loan portfolios, sparking fears of cracks in credit quality.
  • Renewed US–China tensions: Fresh trade friction between the two powers has rattled global markets, prompting investors to move toward gold and other commodities.
  • Washington shutdown uncertainty: The ongoing US government shutdown has curtailed key economic data releases, adding to investor unease.
  • Speculation over Fed rate cuts: Traders are increasingly betting on at least one major US Federal Reserve rate cut this year. Fed Chair Jerome Powell also signaled a likely quarter-point cut this month, a move that typically benefits non-yielding assets like gold.

Gold’s massive 3-year rally

According to data from Spectator Index, gold prices have soared 165.6% over the past three years — from $1,649 per ounce in 2022 to nearly $4,380 today.

The yellow metal has risen 65% in 2025 alone, supported by:

  • Aggressive central bank buying,
  • Strong inflows into exchange-traded funds (ETFs), and
  • Soaring demand for safe-haven assets amid global geopolitical tensions, high debt levels, and questions about the Fed’s policy independence.

Despite record highs, jewellers say the festive demand in India remains resilient, with retailers adapting through lighter designs and flexible pricing schemes