Gold Surges Past $5,100 to Record High as Investors Rush to Safe Havens
Precious metal rally accelerates amid geopolitical tensions, weaker dollar and strong central bank demand.
Gold prices soared to a fresh all-time high above $5,100 per ounce on Monday, extending a historic rally as investors rushed into safe-haven assets amid rising geopolitical tensions and uncertainty surrounding global markets.
Spot gold climbed 2.2 percent to $5,089.78 per ounce by 0656 GMT after touching an intraday record of $5,110.50. US gold futures for February delivery also gained 2.2 percent to $5,086.30 per ounce.
The latest surge builds on gold’s exceptional performance in 2025, when prices jumped 64 percent, marking the metal’s strongest annual gain since 1979. The rally has been driven by strong safe-haven demand, easing US monetary policy, sustained central bank purchases — including China’s fourteenth consecutive month of buying in December — and record inflows into gold exchange-traded funds.
Prices have now posted consecutive record highs over the past week and are already up more than 18 percent in 2026.
Political uncertainty fuels gold rally
Market analysts pointed to growing investor unease over US policy direction as a key catalyst behind the latest price spike.
“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,” said Kyle Rodda, senior market analyst at Capital.com.
US President Donald Trump recently walked back threats to impose tariffs on European allies linked to Greenland negotiations, while over the weekend warning of a 100 percent tariff on Canada over potential trade ties with China. He has also threatened to impose 200 percent tariffs on French wines and champagnes, adding to global trade uncertainty.
“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.
Weaker dollar boosts gold appeal
Gold’s rise was further supported by a weaker US dollar, which fell as the Japanese yen strengthened and investors reduced dollar positions ahead of this week’s Federal Reserve meeting. A softer dollar typically makes gold more attractive to buyers using other currencies.
Analysts see further upside
Market experts expect gold prices to continue climbing amid sustained demand from 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, 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,” he added.
Some analysts have projected that gold could approach $6,000 per ounce later this year if geopolitical risks intensify and market volatility persists.
Other precious metals also hit records
The rally extended across the precious metals complex. Spot silver surged 4.8 percent to $107.90, after earlier hitting a record $109.44. Platinum rose 3.4 percent to $2,861.91, also reaching an all-time high during the session, while palladium gained 2.5 percent to $2,060.70, marking its highest level in more than three years.
Silver recently crossed the $100 mark for the first time, supported by strong retail investor demand, momentum-driven trading and tight physical market supplies.
With economic uncertainty, geopolitical risks and central bank buying showing no signs of easing, precious metals markets remain firmly in focus for global investors.
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