Gold breaks $5,000 barrier as global uncertainty rattles markets

Gold prices surged to an unprecedented level on Monday, climbing beyond the $5,000-per-ounce mark as heightened geopolitical tensions and policy uncertainty fueled demand for safe-haven assets.

Spot gold rose nearly 2 per cent to trade around $5,072 an ounce in early Asian hours, after touching an all-time high of $5,085.50 per ounce. US gold futures for February delivery advanced by a similar margin, reflecting strong momentum across bullion markets.

The rally marks a continuation of gold’s exceptional performance following a sharp rise last year, driven by a combination of easing US monetary policy expectations, aggressive central bank purchases and sustained inflows into gold-backed exchange-traded funds. Analysts note that prices have already gained more than 17 per cent so far this year, following a steep climb in 2025.

Market participants point to growing concerns over global political stability, particularly surrounding recent developments in US trade and foreign policy, as a key driver behind the rush into precious metals. Uncertainty over tariffs and shifting diplomatic signals has weighed on confidence in US assets, prompting investors to increase allocations to gold.

Adding to gold’s appeal, the US dollar weakened broadly as the Japanese yen strengthened, with traders cautious ahead of this week’s Federal Reserve policy meeting. A softer dollar typically supports bullion prices by making gold cheaper for buyers using other currencies.

Analysts remain optimistic about the outlook for the metal. Some forecast further gains in the months ahead, with expectations that gold could peak near $5,500 later this year. While intermittent corrections are likely as investors lock in profits, analysts believe any pullbacks will be brief amid strong underlying demand.

Other precious metals also recorded sharp gains. Silver jumped more than 4 per cent to trade near $108 an ounce after setting a fresh record earlier in the session. Platinum and palladium posted solid advances as well.

Silver’s rally has been particularly striking, with prices pushing above $100 for the first time last week. The metal has benefited from strong retail investor interest, momentum-driven trading and ongoing tightness in physical supply, following outsized gains last year.