Precious metals have just closed out another remarkable session in Asia and Europe.

Gold advanced to a record high of $5,626.80 an ounce in Europe Thursday, as the U.S. dollar declined and geopolitical tensions escalated.

Silver saw a “short squeeze” that saw prices surge above the $120 level.

U.S. gold futures for February delivery were up 3.8% at $5,506.30 after hitting an all-time high of $5,626.80.  Gold  has hit new highs in nine straight trading sessions, and was up 30% for the month so far.

“These are ‘parabolic’ moves, which are dangerous and unsustainable, and usually set a market top. All commodities, especially precious metals, remain a long-term buy, but only after pullbacks from today's highs,” noted Mitchell Feierstein, CEO of Glacier USA LLC.

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Year-to-date, gold has risen 30%, silver is up 71%, and platinum has increased by 6%, Feierstein pointed out.

“These are staggering numbers,” Feierstein said, warning  that “a correction seems near”.

“What this looks like is a massive ‘short squeeze’ — meaning banks and dealers who sold gold, silver, and platinum that they did not have, or futures contracts, had substantial losses and were forced to buy at any price,” Feierstein added.

Meanwhile, the U.S. dollar was lower in early trading, pushing all  commodity prices  higher.

Copper was at $6.475 a pound at 8:30 a.m. EST, up nearly 10% on Thursday alone, while crude oil was trading above $65 a barrel.

Other metals, including aluminum, have reached their highest levels since 2022.

"Gold's perfect storm continues with U.S.-Iran geopolitical tensions, a weak dollar and market expectations of more Fed rate cuts driving prices to endless record highs," said Jamie Dutta, market analyst at Nemo.money, adding that strong ETF inflows have also contributed to the rally.

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SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings on Wednesday rose to 35,043,181 ounces, the highest since May 2022.

U.S. President Donald Trump pressed Iran on Wednesday to negotiate a nuclear deal, warning that Washington would respond more forcefully than it did in last year's attack on Iranian nuclear facilities.

Tehran responded by threatening retaliatory action against the U.S., Israel and their allies.

The U.S. Federal Reserve held rates steady on Wednesday, with investors now looking to Trump's announcement of a new central bank chair, and expecting the next interest rate cut to be in June.

The U.S. dollar remained on shaky ground, after it hit a four-year low on Tuesday on comments from Trump brushing off its recent weakness. A weaker dollar makes greenback-priced gold more attractive to overseas buyers.