Gold surged to fresh record highs above $4,600 an ounce as geopolitical tensions, fiscal uncertainty, and strong central bank buying fueled demand for safe-haven assets, ING's commodity experts Ewa Manthey and Warren Patterson note.

Fed independence fears and geopolitics boost metals

"Gold climbed to fresh records as a range of supportive factors converged. They include geopolitical risks, elevated fiscal uncertainty, strong central bank demand, and ongoing concerns about inflation and monetary credibility."

"The US Justice Department threatened the Federal Reserve with a criminal indictment, reviving concerns over the central bank’s independence. The dollar fell, boosting the prices of metals. Protests in Iran keep geopolitical tensions elevated, while President Trump has reiterated threats to take Greenland, bringing further upside to precious metals."

"Gold surpassed $4,600/oz in yesterday’s trading, while Silver surged past $85/oz. Silver has already climbed around 20% so far this year, following an almost 150% surge last year. This has pushed the Gold/Silver ratio below 60, the lowest level since 2013."