Gold price surpasses $5000 for the first time, reaching a new record
Kyiv • UNN
The price of gold jumped to a record $5081.18 per ounce in the spot market. The rise is driven by demand for safe-haven assets and geopolitical uncertainty.
Gold prices surged to a record high of over $5,000 an ounce on Monday, continuing a historic rally as investors flocked to the safe-haven asset amid rising geopolitical uncertainty, UNN reports with reference to Reuters.
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Spot gold prices rose 1.98% to $5,081.18 per ounce by 03:23 GMT (05:23 Kyiv time), after reaching $5,092.71 earlier. US gold futures for February delivery rose 2.01% to $5,079.30 per ounce.
The metal's price has surged 64% in 2025 due to strong safe-haven demand, easing US monetary policy, intensive central bank purchases (China continued gold purchases for the fourteenth consecutive month in December), and record inflows into exchange-traded funds. Prices have risen more than 17% this year.
The latest catalyst "is essentially a crisis of confidence in the US administration and US assets, which was triggered by some misguided decisions by the Trump administration last week," said Kyle Rodda, senior market analyst at Capital.com.
US President Donald Trump on Wednesday sharply backed down from threats to impose tariffs on European allies as leverage to seize Greenland.
Over the weekend, he stated that he would impose 100% tariffs on Canada if it implemented a trade agreement with China.
Trump threatens Canada with 100% tariffs over possible deal with China24.01.26, 21:26 • 9614 views
He also threatened to impose 200% tariffs on French wines and champagne, apparently trying to force French President Emmanuel Macron to join his Peace Council initiative. Some observers fear that the Council could undermine the UN's role as the "main global platform for conflict resolution," although Trump said he would cooperate with the UN.
"This Trump administration has caused a persistent disruption in how things are done, and so now everyone is kind of running to gold as the only alternative," Rodda added.
Meanwhile, the yen's rise on Monday morning led to a significant drop in the dollar, as markets feared a possible yen intervention and investors cut dollar positions ahead of this week's Federal Reserve meeting.
A weaker dollar makes gold, priced in US dollars, more affordable for holders of other currencies.
After an unprecedented surge in 2025, precious metals are set to reach new heights this year.
"We expect (gold) to continue to rise. Our current forecast sees prices peaking around $5,500 later this year," said Philip Newman, director of Metals Focus.
"Occasional pullbacks are likely as investors take profits, but we expect each correction to be short-lived and met with strong buying interest," Newman added.
Spot silver rose 5.79% to $108.91 an ounce after reaching a record high of $109.44. Spot platinum prices rose 3.77% to $2,871.40 an ounce after hitting a record high of $2,891.6 earlier in the session, and spot palladium prices rose 3.2% to $2,075.30 an ounce, a three-year high.
On Friday, silver climbed above $100 for the first time, building on last year's 147% gain, as retail investor flows and impulsive buying added to a prolonged period of tightness in the metal's physical markets.