Gold prices soared to a historic high above $5,100 per ounce on Monday, extending a powerful rally as investors flocked to the precious metal amid escalating geopolitical tensions and economic uncertainty. Spot gold climbed 2.2% to around $5,089 per ounce in early trading, after briefly touching an all-time high of $5,110.50. U.S. gold futures for February delivery rose by a similar margin, reflecting strong global demand for the safe-haven asset.
The yellow metal has delivered an extraordinary performance, rising 64% in 2025 so far, marking its strongest annual gain since 1979. This surge has been fueled by a combination of factors, including heightened geopolitical risks, expectations of U.S. monetary policy easing, aggressive central bank purchases, and record inflows into gold-backed exchange-traded funds. China, in particular, has continued its gold accumulation, reporting its fourteenth consecutive month of purchases in December.
Gold prices have already gained more than 18% this year and have set multiple record highs over the past week. Analysts point to growing concerns about U.S. political stability and policy unpredictability as a key driver of investor sentiment. Market participants have cited recent statements and trade threats from U.S. President Donald Trump as contributing to a broader loss of confidence in U.S. assets, prompting investors to seek refuge in gold.
The rally has also been supported by a weaker U.S. dollar, which has been pressured by a strengthening Japanese yen and caution ahead of the upcoming Federal Reserve meeting. A softer dollar typically boosts gold prices by making the metal more affordable for buyers using other currencies.
Looking ahead, analysts remain bullish on gold’s outlook. Some forecasts suggest prices could approach $6,000 per ounce later this year, driven by sustained safe-haven demand, central bank buying, and strong retail interest. While short-term pullbacks are possible as investors take profits, experts believe any corrections are likely to be brief.
Other precious metals have followed gold higher. Silver surged nearly 5% to above $107 per ounce after recently breaking the $100 mark for the first time, while platinum and palladium also reached multi-year or record highs, supported by tight physical supply and robust investor demand.


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