The price of gold surged past the historic $5,100 per ounce barrier on Monday, continuing an extraordinary rally as investors globally sought refuge in the precious metal against a backdrop of escalating geopolitical and economic instability.
Spot gold climbed 2.2 percent to $5,089.78 per ounce by 0656 GMT, having earlier achieved an all-time peak of $5,110.50. US gold futures for February delivery mirrored this ascent, gaining an equivalent 2.2 percent to reach $5,086.30 per ounce.
This surge caps a remarkable ascent for the metal, which soared 64 percent in the entirety of 2025 – its most significant annual gain since 1979.
This meteoric rise has been propelled by a confluence of factors: robust safe-haven demand, a shift towards monetary policy easing in the US, persistent large-scale purchases by central banks – including a 14th consecutive month of buying by China in December – and unparalleled inflows into gold-backed exchange-traded funds.
Marking consecutive record highs over the past week, gold has already appreciated by more than 18 percent in the current year.
Commenting on the latest price driver, Kyle Rodda, a senior market analyst at Capital.com, stated, “The latest catalyst is effectively this crisis of confidence in the US administration and US assets, that was set off by some of the erratic decision-making from the Trump administration last week.”
He referenced recent actions by US President Donald Trump, who on Wednesday abruptly reversed threats to impose tariffs on European allies concerning Greenland. Subsequently, over the weekend, Trump declared he would levy a 100 percent tariff on Canada should it proceed with a trade agreement with China.
Further escalating tensions, the President has also threatened 200 percent tariffs on French wines and champagnes, a move perceived as an effort to pressure French President Emmanuel Macron to join his proposed “Board of Peace” initiative.
While President Trump asserts the board will cooperate with the UN, some observers fear it could potentially undermine the UN’s primary role in global conflict resolution.
“This Trump administration has caused a permanent rupture in the way things are done, and so now everyone’s kind of running to gold as the only alternative,” Rodda added.
Concurrently, a strengthening yen exerted broad downward pressure on the US dollar on Monday, keeping markets vigilant for potential currency intervention. This dollar weakness, coupled with investors reducing dollar positions ahead of this week’s Federal Reserve meeting, provided additional lift to gold, as a softer dollar renders dollar-priced bullion cheaper for holders of other currencies.
Market analysts project gold prices to continue their ascent, potentially targeting $6,000 this year, fuelled by mounting global tensions alongside sustained demand from both central banks and retail investors.
“We expect further upside (for gold). Our current forecast suggests that prices will peak at around $5,500 later this year,” said Philip Newman, a director at Metals Focus.
“Periodic pullbacks are likely as investors take profits, but we expect each correction to be short-lived and met with strong buying interest,” Newman further noted.
The rally extended across other precious metals. Spot silver advanced sharply by 4.8 percent to $107.903 per ounce, after reaching a record high of $109.44. Spot platinum climbed 3.4 percent to $2,861.91, having earlier touched a record peak of $2,891.6, while spot palladium rose 2.5 percent to $2,060.70, reaching its highest level in over three years.
Silver’s surge follows its historic breach of the $100 mark last Friday, building on a staggering 147 percent gain in 2024, driven by robust retail investor interest, momentum trading, and persistent tightness in physical market supplies.
