Gold continued its unprecedented ascent Monday, moving past the $5,100 an ounce mark as buyers piled into the metal seeking protection from geopolitical tensions and market upheaval generated by uncertainty around U.S. policy. Spot gold was up 2.2% at $5,093.96 an ounce by 0841 GMT, after earlier touching a record $5,110.50. U.S. gold futures for February delivery rose by a similar margin to $5,090.40.
The jump comes on the heels of an extraordinary 2025 performance for the metal, which surged 64% last year - its largest annual increase since 1979 - propelled by safe-haven demand, expectations for easier U.S. monetary policy, strong central bank purchases and record inflows into exchange-traded funds. Prices have also climbed about 18% since the start of this year.
Market participants point to political developments in the United States as a central force behind the rush into gold. "U.S. President Donald Trump and the uncertainty he creates on multiple levels remain the main driver of surging prices and investment momentum driven by a fear of missing out," said Ole Hansen, head of commodity strategy at Saxo Bank. As part of recent rhetoric, Trump warned he would impose a 100% tariff on Canada if it follows through on a trade deal with China.
Currency moves reinforced the appeal of dollar-priced metals for overseas buyers. The yen rose to a two-month high against the dollar amid speculation about potential U.S.-Japan intervention, and investors pared back dollar positions ahead of this week's Federal Reserve meeting and the potential announcement of a new Fed chair. The dollar index fell to a four-month low, increasing the relative attractiveness of precious metals for foreign holders.
Analysts tracking the market see further upside for gold this year. Some project the metal could move toward $6,000 if global tensions persist and demand from central banks and consumers remains robust. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said further gains cannot be ruled out in stress scenarios, particularly if confidence in currencies or financial assets erodes - though he warned such moves might be punctuated by sharp interim corrections.
From a technical standpoint, spot gold has broken through resistance at $5,070 and, according to Reuters technical analyst Wang Tao, is expected to push into a range of $5,154 to $5,206 an ounce. Wang added that the metal could eventually climb to $5,427.
Other precious metals moved higher in tandem. Spot silver reached a new peak at $110.06 an ounce and was last up 6.2% at $109.36. Silver crossed the $100 threshold for the first time on Friday, building on a monumental 147% gain last year that was driven by retail purchases, momentum buying and prolonged tightness in physical markets.
Rarer precious metals also posted sharp advances. Spot platinum climbed 4.4% to $2,887.76 an ounce after earlier touching a record $2,897.35, while spot palladium rose 3.9% to $2,089.11 after reaching a more than three-year high of $2,095.19.
Key dynamics supporting the rally include a confluence of demand from central banks, sustained ETF inflows and investor repositioning ahead of key U.S. policy decisions. Currency moves that weaken the dollar have amplified the metals' appeal to international buyers, while political and trade rhetoric has added to the safe-haven narrative.