Gold Breaks Past Historic $5,000 Level on Geopolitical Uncertainty

Gold surged to a fresh record above $5,000 per ounce on Monday, extending a historic rally as investors piled into the safe-haven metal amid rising geopolitical and trade uncertainties.

Spot gold rose 1.79% to $5,071.96 per ounce by 0159 GMT after touching an intraday high of $5,085.50. US gold futures for February delivery also climbed 1.79% to $5,068.70 per ounce.

The precious metal has gained 64% in 2025, supported by strong safe-haven demand, expectations of US monetary policy easing, heavy central bank buying, including China’s gold purchases for a fourteenth consecutive month in December, and record inflows into gold-backed exchange-traded funds. Prices are already up more than 17% this year.

Market sentiment has been shaken by escalating geopolitical and trade risks. US President Donald Trump recently pulled back from threats to impose tariffs on European allies in a bid to pressure them over Greenland, but reiterated plans to impose a 100% tariff on Canada if it proceeds with a trade deal with China.

He has also threatened 200% tariffs on French wines and champagne, adding to global market uncertainty.

Meanwhile, a strengthening Japanese yen pushed the dollar lower, with markets watching for possible currency intervention and investors trimming dollar positions ahead of this week’s Federal Reserve meeting. A weaker dollar makes dollar-priced gold cheaper for holders of other currencies, further supporting demand.

“We expect further upside for gold, with prices likely to peak around $5,500 later this year,” said Philip Newman, director at Metals Focus. He added that while periodic pullbacks may occur as investors take profits, corrections are expected to be short-lived due to strong buying interest.

Other precious metals also rallied sharply. Spot silver jumped 4.57% to $107.65 per ounce after hitting a record $108.60. Platinum rose 3.26% to $2,857.41, while palladium gained 3.2% to $2,074.40.

Silver crossed the $100 mark for the first time last week, building on a 147% surge last year as retail investor inflows and momentum-driven buying compounded tight physical market supplies.