Gold eyes best monthly gain in over 50 years; silver breaks $120

The U.S. Federal Reserve left rates unchanged on Wednesday, as investors awaited Trump's announcement of a replacement for central bank chair Jerome Powell

• Gold hits record highs, up 28% this month, best monthly gain since 1973
• Silver hits $120/oz, up 64% in 2023 due to supply deficits and momentum buying.
• Geopolitical tensions and economic uncertainty boost demand for precious metals

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Gold extended its record-breaking rally on Thursday and was on track for its best monthly performance since 1973, as rising economic and geopolitical uncertainties drove investors to the safe-haven metal, while silver hit a record above $120/oz.

Spot gold was 2.1% higher at $5,514.03 an ounce by 08:52 a.m. ET (1352 GMT), after earlier touching $5,594.82. Gold has gained over 28% so far this month.

U.S. gold futures for February delivery were up 3.8% at $5,508.40.

From crypto money to central banks, demand for gold is widening as "precious metals are well in the limelight and investors always like to go where they can get high returns," said GoldSilver Central managing director Brian Lan.

On Wednesday, crypto-group Tether's CEO said it plans to allocate 10%-15% of its investment portfolio to physical gold, while the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, saw holdings at a nearly 4-year high.

Adding to geopolitical uncertainty, U.S. President Donald Trump on Wednesday pressed Iran to negotiate a nuclear deal, while Tehran threatened retaliation against the U.S., Israel, and allies.

The U.S. Federal Reserve left rates unchanged on Wednesday, as investors awaited Trump's announcement of a replacement for central bank chair Jerome Powell, whose term ends in May. Markets expect the central bank to next trim rates in June.

Spot silver was up 2.3% at $119.24 an ounce after reaching $120.44. It has surged nearly 64% so far this year, fueled by supply deficits and momentum buying.

The silver, platinum and palladium markets are small relative to gold or the S&P 500, making them vulnerable to speculative inflows that have left prices "totally detached from where physical demand is robust," said Guy Wolf, global head of market analytics at Marex.

Spot platinum climbed 3.2% to $2,782.54 an ounce, having hit a record high of $2,918.80 on Monday, while palladium rose 0.2% to $2,077.83.