JOHANNESBURG, Jan 26 – Gold prices surged to a record high above $5,000 an ounce on Monday, extending a historic rally as investors sought refuge from escalating geopolitical risks and policy uncertainty.
Spot gold climbed 1.5% to $5,058.09 per ounce by early trading, after touching an all-time high of $5,092.71. U.S. gold futures for February delivery rose 1.6% to $5,056.60 per ounce.
The precious metal posted a 64% gain in 2025, marking its strongest annual performance since 1979. The rally has been fueled by a combination of safe-haven demand, easing U.S. monetary policy expectations, sustained central bank purchases, and record inflows into gold-backed exchange-traded funds. China extended its gold buying streak for a fourteenth consecutive month in December.
Gold prices are already up more than 17% this year, with analysts pointing to growing uncertainty around global trade, geopolitics, and U.S. policy direction as key drivers.
Kyle Rodda, senior market analyst at Capital.com, said the latest surge reflects a broader crisis of confidence in U.S. assets, triggered by erratic policy signals from the Trump administration. Recent developments include renewed tariff threats against Canada, potential trade measures targeting European allies, and concerns over shifts in global diplomatic frameworks.
Despite the sharp gains, analysts expect further upside. Philip Newman, director at Metals Focus, said gold prices could peak around $5,500 later this year, with some forecasts projecting a move toward $6,000 if geopolitical tensions persist.
While short-term pullbacks are likely as investors take profits, analysts say any corrections are expected to be brief and met with strong buying interest from both institutional and retail investors.
