Gold surged past the US$5,000 mark to hit a fresh record on Monday, extending a historic rally as investors sought safety amid intensifying geopolitical uncertainty.
Spot gold climbed 0.85% to US$5,024.95 per ounce by late trading, while US gold futures for February delivery gained 0.91% to US$5,024.60 per ounce. The latest move builds on a powerful run that saw prices jump 64% in 2025 and rise more than 16% so far this year.
The rally has been fuelled by persistent safe-haven demand, easing US monetary policy, strong central bank buying and heavy inflows into exchange-traded funds. China continued its gold-buying streak for a fourteenth consecutive month in December, adding further support to prices.
“We expect further upside. Our current forecast suggests that prices will peak at around US$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.”
Geopolitical risks have added fresh momentum to the advance. Tensions between the US and NATO over Greenland have unsettled markets, while US-brokered talks between Ukraine and Russia ended for a second day without an agreement. The uncertainty deepened after overnight Russian airstrikes left more than a million Ukrainians without power amid freezing conditions.
Adding to the volatility, US President Donald Trump said he would impose a 100% tariff on Canada if it proceeds with a trade deal with China, warning Prime Minister Mark Carney that such a move would endanger the country.
“Our forecast for the year is that gold will see a high of US$6,400 an ounce with an average of US$5,375,” independent analyst Ross Norman said.
Elsewhere, spot silver rose 1.72% to US$104.72 per ounce after breaking above US$100 for the first time last week. Platinum was steady at US$2,767 per ounce, while palladium edged up 0.17% to US$2,013.50 per ounce.
Reuters
