Gold pares gains, silver tops $120

US gold futures for February delivery were up 3.85% at $5,508.7 an ounce

Gold prices pared earlier gains after hitting fresh record highs, following the US Federal Reserve’s decision to leave interest rates unchanged as expected within a range of 3.50% to 3.75% at the end of its two-day meeting on Wednesday.

In Thursday trading, US gold futures for February delivery were up 3.85%, or $205.1, at $5,508.7 an ounce, after touching $5,586.2, the highest level ever for the most-active contract.

Spot gold added about 1.8% to $5,513.41 an ounce after hitting a record high of $5,594.82, while spot silver rose about 0.55% to $117.34 an ounce after earlier touching an all-time high of $120.45.

The dollar index, which measures the US currency against a basket of six major peers, fell 0.2% to 96.26 by 0924 GMT.

Silver futures for March delivery jumped 3.25% to $117.22 an ounce after hitting a record high of $120.56, while spot platinum rose 1.85% to $2,752.02 an ounce and spot palladium gained 0.85% to trade at $2,071.63.

The World Gold Council said on Thursday that global demand for gold rose 1% in 2025 to 5,002 tonnes, the highest level on record, according to Reuters.

The record gains have been driven by continued inflows into safe-haven assets and a weaker dollar amid heightened economic and geopolitical uncertainty linked to the US administration’s economic policy direction.

Traders are increasingly looking beyond the Federal Reserve’s decision, with markets watching the possibility of a leadership change as the end of Jerome Powell’s term approaches. Potential successors include Rick Rieder, an executive at BlackRock, who is seen as an advocate of more accommodative monetary policy.