Gold has hit a historic milestone, soaring past $5,100 an ounce for the first time, buoyed by escalating geopolitical uncertainties and a surge in safe-haven demand. As of early Monday, spot gold was trading at $5,089.78 per ounce, after briefly reaching an all-time high of $5,110.50. US gold futures for February delivery also climbed to $5,086.30.
This rally marks a 64% increase in gold prices for 2025, the strongest annual gain since 1979. Contributing factors include aggressive central bank buying most notably China’s 14th consecutive month of gold purchases massive inflows into exchange-traded funds, and easing US monetary policy.
The surge comes amid ongoing trade tensions initiated by the Trump administration, which has imposed tariffs up to 50% on various countries, disrupting supply chains and inflating business costs. Recent geopolitical developments, including threats of tariffs against Canada and France, have further fueled investor uncertainty.
Silver also made significant gains, crossing $100 an ounce for the first time in history, driven by retail investor enthusiasm and market tightness.
Analysts note that gold's rally reflects the broader economic and geopolitical instability, with prices already up more than 18% this year, underscoring its status as the preferred safe-haven asset in turbulent times.
