Gold Soars Past $5,100 as Trade Tensions Fuel Safe-Haven Rush
Global gold prices shattered records on Monday, surging past $5,100 per ounce as investors sought safety amid escalating global trade tensions and geopolitical uncertainty.
Spot gold touched an unprecedented $5,110.50 per ounce** in early trading, settling at **$5,089.78 by 06:56 GMT. U.S. gold futures followed closely, reaching $5,086.30. This milestone extends a historic rally, with prices already up more than 18% this year following an explosive 64% gain in 2025—the metal’s largest annual increase since 1979.
Drivers of the Rally
Analysts point to a confluence of factors propelling the rally:
· Geopolitical and Trade Uncertainties: Aggressive U.S. trade policy has disrupted global markets. Recent threats of 100% tariffs on Canada and 200% tariffs on French wines have intensified fears of a widening trade war.
· Monetary Policy and Currency Moves: A broadly weaker U.S. dollar, partly due to a rising yen, has made dollar-priced gold more affordable for international buyers. Markets are also anticipating the upcoming Federal Reserve meeting.
· Sustained Institutional Demand: The rally is underpinned by robust central bank purchases—notably China’s 14 consecutive months of buying—and record inflows into gold-backed exchange-traded funds.
The Broader Precious Metals Surge
The bullion boom is not confined to gold. Silver surpassed the $100 per ounce mark for the first time on Friday, building on a remarkable 147% surge in 2025. This rise is attributed to strong retail investment and tight physical supplies.
Context and Outlook
The current price surge occurs as what analysts call the most disruptive trade war since the 1930s upends supply chains. While the U.S. administration has stepped back from some threats, such as tariffs linked to negotiations over Greenland, the overall climate remains volatile.
With investors continuing to pile into safe-haven assets, the record-setting rally for precious metals shows no immediate signs of abating.
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