Gold surged above $5,100 an ounce on Monday, hitting a new record for the first time as more investors turned to safe-haven assets amid rising global tensions. The metal jumped 64% in 2025, its strongest annual gain since 1979.
Notably, prices have hit new highs day after day over the past week and are up more than 18% so far this year.
Gold crosses $5,100
Spot gold was up 2.2% at $5,089.78 an ounce by 06:56 GMT (12:26 IST), having earlier hit a new all-time high of $5,110.50.
Meanwhile, silver breached the $100 level for the first time on Friday, adding to last year’s jump of 147%, as longs remained limited in supply in the physical market due to buying by retail investors and momentum-based trades.
News agency Reuters reported that analysts believe gold could reach close to $6,000 this year as global tensions rise and demand from central banks and retail buyers remains strong.
Why are gold prices increasing?
The rapid rise is mainly due to changes in international relations due to US President Donald Trump and investors moving away from government bonds and currencies.
After recording its strongest annual performance since 1979, it has climbed more than 17% so far this year, largely due to what is known as a debasement trade, where investors pull money out of currencies and Treasuries, Bloomberg reported.
A big selloff in the Japanese bond market last week is the latest sign of investors turning away from heavy government spending.
In recent weeks, actions by the Trump administration, including criticism of the Federal Reserve, threats over Greenland and military intervention in Venezuela, have unsettled markets. For those trying to deal with this uncertainty, gold has grown in appeal as a safe haven investment.
Kyle Rodda, senior market analyst at Capital.com, told Reuters the latest move “effectively sums up the crisis of confidence in the US economy and US assets that was caused by some erratic decisions by the Trump administration last week.”
Trump walked back Wednesday from previous threats to impose tariffs on European allies to pressure Greenland.
with inputs from agencies
