Gold soared past $5,100 an ounce on Monday, reaching a new record for the first time as more investors turned to the safe-haven asset amid growing global tensions.
The metal jumped 64% in 2025, in what was its strongest yearly rise since 1979.
Notably, the price has hit fresh highs day after day over the past week and has already gained more than 18% so far this year.
Gold blasts past $5,100
Spot gold was up 2.2% at $5,089.78 per ounce by 06:56 GMT (12:26 IST), after earlier reaching a new all-time high of $5,110.50.
Meanwhile, silver rose past the $100 level for the first time on Friday, adding to its 147% jump last year as buying by retail investors and momentum-led trades led to a long period of tight supply in the physical market.
Analysts believe gold could move closer to $6,000 this year as global tensions grow and demand from central banks and retail buyers remains strong, news agency Reuters reported.
Why gold prices are racing
The rapid rise is mainly due to changes in international ties fuelled by US President Donald Trump and investors moving away from government bonds and currencies.
After posting its strongest yearly performance since 1979, it has climbed more than 17% so far this year, largely because of what is known as the debasement trade, where investors pull back from currencies and treasuries, Bloomberg reported.
A large sell-off 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’s appeal as a safe place to invest has grown.
Kyle Rodda, a senior market analyst at Capital.com, told Reuters that the latest move “is effectively this crisis of confidence in the US administration and US assets, that was set off by some of the erratic decision-making from the Trump administration last week.”
Trump on Wednesday pulled back from earlier threats to place tariffs on European allies as a way to pressure them over Greenland.