📈 Gold Rallies Near US$ 5,600/oz Amid Global Tensions

Global precious metal prices hit unprecedented highs on Thursday as safe-haven demand intensified due to geopolitical uncertainty and economic shifts. • Overall Market Figures • Gold: Surged to a record US$ 5,591.61/oz, gaining over 10% this week. • Silver: Reached a peak of US$ 119.34/oz, up 60% year-to-date. • Platinum: Rose to US$ 2,723.40/oz, following a record high earlier in the week. • Local Impact & Prices • 24-Carat Gold: Trading at approximately Rs. 456,850 per 8 grams (pawn) in Sri Lanka, reflecting the global surge. • 22-Carat Gold: Priced at roughly Rs. 418,850 per 8 grams (pawn), a significant jump driven by currency factors and global demand. • Domestic Market: Local prices in the Colombo Pettah market have increased by roughly Rs. 12,000 per sovereign recently. • Key Drivers • Geopolitical friction between the U.S. and Iran and a splintering global trade system. • Central bank buying and the U.S. Fed’s decision to keep interest rates unchanged. • Significant portfolio allocations to physical gold by large institutional entities like Tether (10%–15%). • Sector & Industrial Risks • Apparel & Textiles and ICT/BPM: While gold acts as a hedge for inflation, the soaring price of silver (up 60%) poses a direct cost threat to the tech sector and green energy components. • Investment: Analysts suggest the "parabolic" rally may lead to a brief pullback, though fundamentals remain supportive for 2026.