The spot price of gold has soared past $5,000 per ounce for the first time. This extends a stunning rally that lifted the metal over 60% in 2025.
U.S.-NATO tensions over Greenland and President Donald Trump’s threat to impose a 100% tariff on Canada over any China trade deal have deepened economic and geopolitical fears.
Gold and silver serve as key safe havens in volatile times. Silver topped $100 per ounce last Friday after a near-150% rise last year.
High inflation, a weak dollar, central bank buying, and expected Federal Reserve rate cuts in 2026 fuel demand. Wars in Ukraine and Gaza plus the U.S. arrest of Nicolás Maduro add further momentum.
Only 216,265 tonnes of gold have ever been mined, per the World Gold Council, enough for three or four Olympic pools, mostly post-1950. Reserves of 64,000 tonnes remain but supply will soon plateau.
“When you own gold, it’s not attached to the debt of somebody else like a bond is or an equity where the performance of a company will drive performance,” said Nicholas Frappell of ABC Refinery. “It’s a really good diversifier in a very uncertain world,” he added.
Gold posted its best year since 1979 amid tariff worries and AI stock concerns. “I think a large part of that is the extreme uncertainty we have around U.S. policy,” said Nikos Kavlis of Metals Focus.
Lower rates diminish bond yields, pushing investors to bullion. Central banks added hundreds of tonnes last year. “There’s a very clear shift away from the U.S. dollar, which is benefiting gold immensely,” Kavlis noted.
Prices have risen over 16% into 2026, recently hitting $5,074. “There’s got to be scope for unexpected news that actually might be positive for the world and not necessarily positive for gold,” Frappell warned.