Gold prices surged to a new all-time high above $5,100 per ounce on Monday, extending an extraordinary rally as investors flocked to the precious metal amid escalating geopolitical risks and growing uncertainty in global markets.
Spot gold climbed 2.2% to $5,089.78 per ounce by 0656 GMT, after briefly touching a record peak of $5,110.50 earlier in the session. U.S. gold futures for February delivery also rose 2.2% to $5,086.30 per ounce.
The metal has gained an astonishing 64% in 2025, marking its strongest annual performance since 1979. The rally has been fueled by intense safe-haven demand, expectations of looser U.S. monetary policy, sustained central bank buying, and record inflows into gold-backed exchange-traded funds.
Gold prices have posted consecutive record highs over the past week and are already up more than 18% since the start of the year.
According to analysts, the latest surge reflects a growing loss of confidence in U.S. leadership and American financial assets. Market participants have reacted to a series of unpredictable policy signals from the Trump administration, which have unsettled investors and increased demand for defensive assets.
Last week, U.S. President Donald Trump abruptly reversed threats to impose tariffs on European allies as leverage in a dispute involving Greenland. Over the weekend, he warned that Canada could face a 100% tariff if it proceeds with a trade agreement with China.
Trump has also threatened to impose tariffs of up to 200% on French wines and champagne, a move widely seen as an attempt to pressure France into supporting his proposed Board of Peace initiative. Critics have expressed concern that such a body could weaken the role of the United Nations, though Trump has said it would work alongside the U.N.
Analysts said these developments have pushed investors toward gold as a perceived store of value, amid fears that traditional financial and political frameworks are becoming less reliable.
Meanwhile, a strengthening Japanese yen weighed broadly on the U.S. dollar on Monday. Markets remain alert for possible currency intervention, while investors reduced dollar exposure ahead of this week’s Federal Reserve policy meeting.
A weaker dollar typically supports gold prices, as the metal becomes cheaper for buyers using other currencies.
Looking ahead, analysts expect gold prices to continue rising, potentially approaching $6,000 per ounce this year. Ongoing geopolitical tensions, combined with strong central-bank demand and continued retail buying, are expected to underpin prices.
Some market watchers forecast gold peaking around $5,500 later this year, noting that while short-term pullbacks may occur as investors take profits, any corrections are likely to be shallow and met with renewed buying interest.
Other precious metals also recorded sharp gains. Spot silver jumped 4.8% to $107.90 per ounce after hitting a record high of $109.44. Platinum rose 3.4% to $2,861.91, having earlier touched an all-time high of $2,891.60, while palladium advanced 2.5% to $2,060.70, reaching its strongest level in more than three years.
Silver crossed above the $100 mark for the first time on Friday, extending a powerful rally driven by retail investor inflows, momentum-based buying, and persistent tightness in physical supply.
