Gold blasts past $US5000 to record on safe-haven rush
Gold continued its historic rally, rising to a record high above US$5,000 ($7,283) per ounce as investors turned to the safe-haven asset amid growing geopolitical uncertainties.
Spot gold rose 1.98 per cent to $5,081.18 per ounce at 03:23 BST (14:33 AEDT) on Monday, after touching $5,092.71 earlier.
US gold futures for February delivery rose 2.01 percent to $5,079.30 per ounce.
The metal has soared 64 percent in 2025, fueled by sustained safe-haven demand, easing of U.S. monetary policy, strong central bank buying as China extended its gold-buying spree into a fourteenth month in December, and record inflows into exchange-traded funds. Prices have increased by more than 17 percent this year.
The latest catalyst is “a crisis of confidence in the U.S. administration and U.S. assets triggered by some unstable decisions made by the Trump administration last week,” said Kyle Rodda, senior market analyst at Capital.com.
US President Donald Trump abruptly backtracked on Wednesday from threatening to impose tariffs on European allies as leverage to seize Greenland.
Over the weekend, he said he would impose 100 per cent tariffs on Canada if a trade deal is reached with China.
He also threatened to impose 200 percent tariffs on French wines and champagnes in an attempt to force French President Emmanuel Macron to join the Peace Board initiative. Some observers fear that the body could undermine the United Nations’ role as the “main global platform for conflict resolution”; but Trump said the board would work with the UN.
“This Trump administration has caused a permanent break in the way things are done and that is why everyone is now turning to gold as the only alternative,” Rodda added.
Meanwhile, a rising yen dragged the dollar broadly lower early Monday as markets became alarmed about possible intervention in the yen and investors cut dollar positions ahead of this week’s Fed meeting.
The weakening of the dollar makes gold priced in US dollars more affordable for those who hold other currencies.
“We expect further upside for gold. Our current forecast suggests prices will peak around US$5,500 later this year,” said Metals Focus director Philip Newman.
“Periodical pullbacks are likely as investors take profits, but we expect any correction to be short-lived and met with strong buying interest,” Newman added.
Spot silver rose 5.79 per cent to US$108.91 ($A158.65) an ounce, after reaching a record high of US$109.44. Spot platinum rose 3.77 per cent to US$2,871.40 (A$A4,182.67) per ounce, after reaching a record high of US$2,891.6 at the start of the session, while spot palladium rose 3.2 per cent to US$2,075.30 (A$3,023.01) per ounce.
Silver climbed above the US$100 level for the first time on Friday, extending last year’s 147 percent rally as retail investor flows and momentum-driven buying created a prolonged squeeze in physical markets for the metal.
