Gold is approaching $5,000 and silver is at its highest levels

Silver prices rose above the $100 level for the first time ever on Friday evening, as they jumped in spot transactions by 4.5% to reach $100.49 per ounce, while gold recorded another unprecedented record, recording $4,976.49 per ounce, after rising 0.8%, with investors flocking to safe assets amid geopolitical turmoil and expectations of a reduction in US interest rates.

US gold futures for February delivery increased 1.3 percent to $4,978.60 an ounce.

“Silver should continue to benefit from many of the same forces that support investment demand in gold,” said Philip Newman, director at Metals Focus, Philip Newman.

“Additional support will come from ongoing concerns over tariffs and physical liquidity, which remains low in the London market,” he added.

Silver rose by more than 200 percent last year, also driven by ongoing challenges in expanding its processing and continued shortages in market supply.”

Since the beginning of the year, tension between the United States and NATO over Greenland, concerns about the independence of the Federal Reserve (the US central bank), and continued uncertainty over customs duties have led to increased demand for safe haven assets.

Purchases by central banks and the broader trend towards getting rid of the dollar contributed to pushing gold prices to record levels.

The Fed is expected to keep interest rates steady at its meeting on January 27-28, but markets still expect two more rate cuts in the second half of 2026.

Gold, which does not generate a return, benefits from low interest rates. Gold reached record levels of three thousand and four thousand per ounce for the first time last year in March and October, respectively. Platinum rose in spot transactions by four percent to $2,735 an ounce, after reaching a record level of $2,749.2 earlier. Palladium jumped 4.3 percent to 2002.22.