Gold surged to fresh record highs this week, breaking above $5,100 an ounce as investors piled into safe-haven assets amid rising geopolitical tension and political uncertainty in the U.S.
Spot gold climbed 2% to $5,077, after briefly touching $5,110, while U.S. gold futures settled at $5,082. Silver and platinum also hit all-time highs, signalling broad strength across precious metals.
The rally follows new geopolitical friction after President Donald Trump threatened a 100% tariff on Canada should it proceed with a trade deal with China. The move rattled markets already on edge.
“For precious metals this year, the drivers are going to be Trump and Trump,” said Adrian Ash of BullionVault, noting a surge of first-time private investors across Asia and Europe building personal gold and silver holdings.
Gold is also benefitting from pressure on the Federal Reserve, as Trump pushes for lower interest rates amid an investigation into Fed Chair Jerome Powell. Lower rates would further support non-yielding gold, which is already up nearly 18% this year after a 64% surge in 2025.
Analysts see more upside ahead. Societe Generale expects gold to reach $6,000 by year-end, while Morgan Stanley sees a bull-case target of $5,700. Longer term, Clem Chambers argues escalating global conflict could drive gold as high as $10,000 an ounce by 2027.
Once unthinkable, $5,000 gold now looks less like a ceiling and more like a stepping stone.
Further reading: Aljazeera | Gold prices cross $5,100 for the first time amid geopolitical uncertainties
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.
