Gold pushes beyond $5,100 as investors seek safety
Gold climbed to a new all-time high above $5,100 an ounce, extending a powerful rally as investors moved funds into assets seen as a store of value amid growing geopolitical unease.
Spot gold rose by over 2% in early trading, reaching $5,110.50 at its peak before easing slightly. US gold futures followed a similar path, reflecting strong demand across global markets.
The precious metal delivered a gain of more than 60% during 2025, marking its strongest annual performance since the late 1970s. The surge has been supported by sustained safe-haven buying, expectations of looser US monetary policy, continued purchases by central banks, and strong inflows into exchange-traded funds. China extended its buying streak for another month in December, reinforcing the theme of official-sector demand.
Gold prices have set multiple record highs in recent sessions and are already up more than 18% so far this year.
Market analysts point to a growing loss of confidence in US political and economic direction as a key driver. Kyle Rodda of Capital.com said recent policy signals from the US administration have unsettled investors and encouraged a shift away from traditional dollar-based assets.
Donald Trump recently rowed back on threats to impose tariffs on European allies linked to proposals around Greenland, while also warning of severe trade measures against Canada and France in connection with wider geopolitical initiatives. Comments relating to French wines and champagne were widely interpreted as an attempt to influence Emmanuel Macron. Concerns have also been raised about the potential impact of proposed international structures on the role of the United Nations, despite assurances that cooperation would continue.
Currency markets added further momentum to gold’s rise. A stronger Japanese yen weighed on the US dollar, making dollar-priced commodities more attractive to overseas buyers. Investors are also positioning cautiously ahead of this week’s meeting of the Federal Reserve.
Looking ahead, analysts remain broadly constructive on the outlook for gold. Philip Newman of Metals Focus said prices could continue to move higher this year, with forecasts suggesting a peak around $5,500. He noted that short-term pullbacks are likely as profits are taken, though buying interest is expected to remain strong.
Other precious metals also posted sharp gains. Silver jumped nearly 5% after touching a fresh record, while platinum and palladium climbed to multi-year highs. Silver recently moved above the $100 level for the first time, supported by strong retail participation and ongoing tightness in physical supply.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
