Spot gold surged 3.07% to $4,695.40 per ounce on Wednesday, briefly touching an intraday high of $4,702.18 — a new all-time record — as investors simultaneously embraced the risk-on trade in equities and hedged against the possibility that Iran peace talks could collapse. The precious metal has now gained over 25% year-to-date, making it one of the best-performing asset classes of 2026.
Gold futures for June delivery (GC1) settled at $4,698.20, up $139.80 on the session. Silver (XAG) gained 4.2% to $58.40 per ounce, platinum rose 2.8% to $1,180, and palladium added 1.9% to $1,045. The gold-to-silver ratio compressed to 80.4 from 82.1, a level that historically favors continued precious metals strength.
Central Bank Buying Continues
The World Gold Council reported that central banks purchased a net 298 metric tons of gold in Q1 2026, marking the ninth consecutive quarter of net purchases above 200 tons. China's PBOC added 18 tons in April alone, bringing its official gold reserves to 2,450 tons — though analysts estimate actual holdings may be significantly higher. India's RBI, Poland's NBP, and Turkey's CBRT were also notable buyers.
Goldman Sachs commodity analyst Lina Thomas raised her year-end gold forecast to $5,200 from $4,800, citing 'structural de-dollarization demand, persistent geopolitical hedging needs, and the prospect of Fed rate cuts later this year.' The bank estimates that central bank buying alone is adding $180-$220 per ounce to gold's fundamental value.