Gold hits record above $5,100 amid global uncertainty

Gold surged to a record high above $5,100 an ounce on Monday, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical uncertainties.

Spot gold were up 2.2% at $5,089.78 per ounce by 0656 GMT, after earlier touching an all-time high of $5,110.50. U.S. gold futures for February delivery also gained the same amount to $5,086.30 per ounce.

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The metal soared 64% in 2025, its biggest annual gain since 1979, driven by safe-haven demand, U.S. monetary policy easing, robust central bank purchases including China’s fourteenth straight month of buying in December, and record inflows into exchange-traded funds.

Prices have set consecutive record peaks over the past week and have already risen more than 18% this year.

After posting unprecedented gains in 2025, precious metals are set to reach new heights this year

The latest catalyst “is effectively this crisis of confidence in the U.S. administration and U.S. assets, that was set off by some of the erratic decision-making from the Trump administration last week”, said Kyle Rodda, a senior market analyst at Capital.com.

U.S. President Donald Trump abruptly stepped back on Wednesday from threats to impose tariffs on European allies as leverage to seize Greenland.

Over the weekend, he said he would impose a 100% tariff on Canada if it followed through on a trade deal with China.

Item 1 of 2 UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola Purchase Licensing Rights, opens new tab

He has also threatened to hit French wines and champagnes with 200% tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his Board of Peace initiative. Some observers fear the board could undermine the United Nations’ role as the main global platform for conflict resolution, though Trump has said it will work with the U.N.

“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.

Meanwhile, a rising yen dragged the dollar broadly lower on Monday, with markets on alert for possible intervention in the yen and investors cutting dollar positions ahead of this week’s Federal Reserve meeting.

A weaker dollar makes greenback-priced gold more affordable for holders of other currencies.

Analysts expect gold prices to climb further toward $6,000 this year on mounting global tensions as well as strong central-bank

Reuters