GOLD surged beyond the $5,100 mark on Monday to set a fresh all-time high, extending a powerful rally driven by heightened geopolitical risks and growing demand for safe-haven assets.
Spot gold jumped 2.2 percent to $5,089.78 an ounce by 0656 GMT, after touching a record peak of $5,110.50 earlier in the session. The United States’ gold futures for February delivery also rose 2.2 percent to $5,086.30 an ounce.
The precious metal recorded a remarkable 64 percent gain in 2025, its strongest annual performance since 1979, supported by aggressive central bank buying, easing U.S. monetary policy, and strong inflows into exchange-traded funds. China extended its gold purchases for a 14th consecutive month in December, further underpinning demand.
Prices have hit multiple record highs over the past week and are already up more than 18 percent so far this year, signalling continued investor appetite for bullion.
According to Senior Market Analyst at Capital.com, Mr Kyle Rodda, the latest rally reflected ‘a crisis of confidence in the U.S. administration and U.S. assets,’ triggered by what he described as erratic policy decisions from President Donald Trump in recent days.
Trump recently reversed earlier threats to impose tariffs on European allies as part of efforts linked to Greenland, but over the weekend warned of a 100 percent tariff on Canada should it proceed with a trade deal with China. He has also threatened 200 percent tariffs on French wines and champagnes in a move seen as pressure on French President Emmanuel Macron to join his proposed Board of Peace initiative.
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Mr Rodda said these developments had shaken investor confidence. “This administration has created a lasting shift in how things are done, and people are increasingly turning to gold as the only credible alternative,” he said.
Meanwhile, a strengthening Japanese yen weighed on the U.S. dollar, as markets remained alert to possible currency intervention and investors trimmed dollar holdings ahead of the Federal Reserve’s policy meeting, Reuters reported. A weaker dollar typically boosts demand for gold by making it cheaper for non-dollar investors.
Market analysts believe the rally still has room to run. Some forecast gold could approach $6,000 an ounce this year, supported by escalating global tensions and sustained demand from both central banks and retail investors.
Director at Metals Focus, Mr Philip Newman, said prices were likely to climb further, with his firm projecting a peak of around $5,500 later in the year. He added that while profit-taking might cause short-term dips, any pullbacks were expected to be brief and met with renewed buying.
Other precious metals also surged. Spot silver rose 4.8 percent to $107.90, after touching a record high of $109.44. Platinum gained 3.4 percent to $2,861.91, after hitting an all-time high of $2,891.60, while palladium climbed 2.5 percent to $2,060.70, a more than three-year high.
Silver crossed the $100 threshold for the first time on Friday, building on its 147 percent gain last year, driven by strong retail demand, speculative momentum, and tight physical supply conditions.
Economy Post reported on Friday that gold climbed close to $5,000 an ounce, while silver surged past $100 in a dramatic rally driven by whatanalysts call the ‘debasement trade.’
Market strategists pointed to several forces behind the surge, including a weakening US dollar, growing expectations that the Federal Reserve will cut rates, widening fiscal deficits, and declining appetite for government bonds.
