Gold’s ‘spectacular’ price rise continues as new record high hit

Hundreds lined up at bullion retailers across Australia on Thursday as gold prices surged again, with the precious metal reaching another record high.

The queues at retailers were building up last week, but a meteoric overnight rise in the gold price saw queues stretching around the block at the big traders in the capital cities.

Thursday morning Australian time, gold rose to a new record above $US4200/oz, as silver lifted above a record $US52/oz.

“The surge in both precious metals since the beginning of this year has been nothing short of spectacular,” Commonwealth Bank head of commodities Vivek Dhar said.

“It’s worth noting though that other precious metals have been surging too. Palladium has increased 75 per cent, while platinum has sky‑rocketed 87 per cent since the start of the year.”

The surging price of all four metals coincides with expectations of US rate cuts.

“Lower US interest rates increase the appeal of precious metals relative to US interest bearing assets,” Mr Dhar said.

“The rise in precious metal futures overnight is consistent with this same narrative.”

While the surging prices are being spurned by watchers of the US central bank, the trend began with Donald Trump’s tariff upheaval in April.

“The seismic shift for precious metals likely took place when US President Trump announced ‘Liberation Day’ tariffs,” Mr Dhar said.

“The subsequent fall in US equity markets (i.e. S&P500) in the wake of these tariff announcements saw gold, silver, platinum and palladium outperform the US dollar.

“This event, in our view, marked the emergence of precious metals, particularly gold, as the preferred safe‑haven asset over the US dollar and US Treasuries.”

Independent analyst Stephen Innes said the US uncertainty re-coronated gold.

“At (US)$4200 an ounce, it isn’t just a number, it’s a compass bearing for collective doubt.

“Beneath the tariff tempests and Fed chatter, the old refuge has reclaimed its throne. When central bankers promise smooth sailing and traders sense undertow, gold becomes the last true north.”

ABC Bullion in Sydney’s Martin Place was jam packed on Thursday, with about 100 people queuing outside the store at 3pm.

ABC Bullion general manager Jordan Eliseo said about 1000 people are visiting the company’s Sydney, Melbourne, Perth and Brisbane stores each day.