Rewrites for early US hours

By Ashitha Shivaprasad

Jan 23 (Reuters) - Gold steadied on Friday after surging to a record high just below the $5,000-an-ounce level, while silver prices sat just shy of the $100 milestone, buoyed by momentum buying and strong fundamentals.

Spot gold XAU= was steady at $4,931.28 an ounce at 1332 GMT, having touched a record $4,967.03 earlier in the day. U.S. gold futures GCcv1 for February delivery added 0.4% to $4,934.20.

"Gold's role as a haven and a diversifier in highly uncertain economic and political times is making it a necessity for strategic portfolios. It's more than a perfect storm, which doesn't last, it's a sign of fundamentally changing times," said Tai Wong, an independent metals trader.

Since the start of the year, friction between the U.S. and NATO over Greenland, concerns about the Federal Reserve’s independence, and continued uncertainty over tariffs have driven a surge in demand for safe‑haven assets.

Central bank buying and a broader move away from the dollar have also underpinned gold's rise.

"We also consider the White House’s increasing aggravation of Fed policy, pushing for lower rates and a more dovish Fed Chair, as reducing confidence in U.S. government debt," analysts at SP Angel said.

The Fed is expected to hold interest rates steady at its January 27–28 meeting, but markets still expect two further rate cuts in the second half of 2026. FEDWATCH

As a non‑yielding asset, gold is often favored during periods of low interest rates.

Spot silver XAG= surged by 3.1% to $99.19 an ounce after hitting a record high of $99.65. Silver rose around 147% last year driven by robust demand, challenges in scaling up refining of the metal and a persistent supply shortage in the market.

"Silver, specifically, has been helped by anecdotal evidence of lines in Shenzhen and huge retail demand in Turkey and Dubai," Wong added.

Spot platinum XPT= gained 2.6% to $2,696.57 an ounce after hitting a record $2,718.40. The metal is up 31% since the start of the year.

HSBC said in a note that platinum is "attracting investor demand as a cheaper alternative to gold."

"We expect the production/consumption deficit to widen to over 1.2 moz in 2026," the note added.

Palladium XPD=, meanwhile, jumped by 2.3% to $1,963.18.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Tasim Zahid)

((Ashitha.Shivaprasad@thomsonreuters.com;))