Polina Devitt

Gold's remarkable rise has moved into a new phase with the swelling influence of speculators bringing greater volatility yet market players are sticking with forecasts for higher prices in 2026 even if central bank demand eases.

Large flows of silver from the U.S. and China to London's spot market in the past week are easing a liquidity squeeze in the world's largest over-the-counter precious metals trading hub, traders and analysts said.

The European Commission's proposal to tap frozen Russian state assets for financial aid to Ukraine is rattling some central banks, which could further accelerate gold purchases for storage outside Western jurisdictions, analysts say.

Outsized flows into exchange-traded funds tracking gold have helped drive a spectacular rally that pushed bullion to record highs over the last month, analysts said.

Silver prices shot to a record high on Wednesday, buoyed by gold's bull run and growing investor demand for hard assets amid persistent geopolitical and economic risks, as well as expectations of U.S. interest rate cuts.

Anxieties over global geopolitical and economic risks are the biggest drivers pushing gold's 54% surge this year, with analysts seeing little to halt the rally.

Metals analysts are cutting their estimates of global copper supplies for this year and next after an accident at the giant Grasberg mine dramatically tightened the outlook for the market.

Gold prices hit a record $3,728 per troy ounce on Monday, extending a rally that has boosted them twofold since late 2022. Demand is expected to remain robust for some time due to a mix of factors.

Global commodity trading house Gunvor (GGL.UL) is expanding its precious metals business from trading derivatives into physical metal and has hired specialists in the London and Singapore trading hubs, the company told Reuters.

Gold's powerful rally took on fresh legs on Friday, with prices just cents away from $3,600 per ounce, as weak U.S. jobs data further raised expectations for bullion-supportive Federal Reserve rate cuts.