Gold holds above $4,000

Gold prices held above $4,000 an ounce on Thursday as investors assessed the Israel-Hamas ceasefire deal, while broader geopolitical and economic uncertainty alongside expectations for US rate cuts sustained bullish sentiment towards the metal, reports Reuters.

Silver hit the $50 psychological level for the first time, bolstered by gold's record-breaking rally, growing investor demand and a supply deficit. Spot gold was steady at $4,038.59 per ounce at 1226 GMT. US gold futures for December delivery fell 0.3 per cent to $4,057.70.

Gold prices rose above $4,000 per ounce for the first time on Wednesday, hitting a record high of $4,059.05.

Silver was up 2.2 per cent at $50.01 per ounce. The metal has gained more than 73 per cent this year, benefiting from the same factors as those driving gold's rally as well as tightness in the spot market.

"The interesting aspect about the silver market is that the net long positions are only modestly higher so this is not a rally based upon speculative interest. It's got some pretty solid fundamentals attached to this move in the silver price," said independent analyst Ross Norman.

US President Donald Trump announced that a ceasefire and hostage deal had been reached between Israel and Hamas under the first phase of his plan to end the war in Gaza.

"Gold's rally is facing resistance as the Gaza diplomatic breakthrough reduces risk-off flows, while the ongoing US dollar recovery undermines bullion's strength, leaving it vulnerable to pullbacks," said Nikos Tzabouras, Senior Market Analyst at Tradu. "However, the bullish bias remains intact, and the path to new all-time highs is still wide open."