Gold Smashes $5,000 as Investors Rush to Safety Amid Global Tensions

Gold surged past the landmark $5,000-per-ounce level on Monday, extending a historic rally as investors flocked to safe-haven assets amid mounting geopolitical uncertainty and renewed trade tensions.

Spot gold jumped 1.5% to $5,058.09 an ounce by early European trade, after touching a fresh all-time high of $5,092.71. U.S. gold futures for February delivery climbed 1.6% to $5,056.60.

The precious metal has been on a relentless upward trajectory, rising more than 17% so far this year after a stunning 64% gain in 2025—its strongest annual performance since 1979. The rally has been fueled by a powerful mix of safe-haven demand, expectations of easier U.S. monetary policy, aggressive central-bank buying, and record inflows into gold-backed exchange-traded funds.

China alone extended its gold purchases for a fourteenth consecutive month in December, underlining the scale of official-sector demand.

Geopolitical uncertainty has returned to the forefront after President Donald Trump revived trade threats over the weekend. While he stepped back last week from using tariffs on European allies as leverage over Greenland, he warned that Canada could face a 100% tariff if it proceeds with a trade deal with China. He has also threatened to impose 200% tariffs on French wines and champagne in a bid to pressure President Emmanuel Macron into joining his proposed “Board of Peace” initiative.

These developments have heightened investor anxiety and reinforced gold’s appeal as a hedge against political and economic instability.

Currency markets have added further support. A strengthening Japanese yen dragged the U.S. dollar lower early Monday, with traders wary of potential intervention in Japan and cutting dollar positions ahead of this week’s Federal Reserve meeting. A weaker dollar makes gold cheaper for buyers using other currencies, amplifying demand.

Analysts now see scope for even higher prices. Some expect gold to push toward $6,000 an ounce later this year, driven by escalating global tensions and sustained demand from both central banks and retail investors. From a technical perspective, Reuters analyst Wang Tao said spot gold could break resistance at $5,088 and move toward the $5,168–$5,188 zone.

The surge in precious metals extended beyond gold. Spot silver leapt 3.8% to $106.80 after hitting a record $109.44, while platinum rose 1.3% to $2,802.30 after earlier touching a new high of $2,891.60. Palladium added 1.2% to $2,034.75, marking a more than three-year peak.

Silver’s rally has been particularly dramatic. The metal crossed the $100 mark for the first time on Friday, building on last year’s 147% gain as tight physical supply, retail inflows, and momentum-driven buying combined to propel prices to unprecedented levels.

With geopolitical risks intensifying and faith in traditional anchors of stability being tested, gold’s historic run appears far from over.