Economy|Business and EconomyGold prices cross $5,100 for the first time amid geopolitical uncertaintiesSpot gold price touches an all-time high of $5,110.50 for an ounce in the first hours of the day.
Gold prices have reached a record high, exceeding $5,100 per ounce. This increase is attributed to the ongoing geopolitical uncertainties that have led investors to seek safe-haven assets.
Gold prices have reached a record high, exceeding $5,100 per ounce. This increase is attributed to the ongoing geopolitical uncertainties that have led investors to seek safe-haven assets.
As of 06:56 GMT on Mon, the spot price of gold increased by 2.2% to $5,089.78 per ounce, after reaching an all-time high of $5,110.50 earlier. US gold futures for February delivery also rose to $5,086.30 per ounce.
In 2025, gold prices surged by 64%, marking the most significant annual increase since 1979. This rise was driven by safe-haven demand, easing US monetary policy, substantial central bank purchases, including China’s continued buying streak, and record inflows into exchange-traded funds. Prices have consistently set new records over the past week, increasing more than 18% so far this year.
The persistent increase in gold prices coincides with global trade disruptions caused by tariffs imposed by the US administration. Since last January, tariffs have been placed on various countries, affecting supply chains and increasing business costs. Some countries have faced tariffs as high as 50%.
This increase is attributed to the ongoing geopolitical uncertainties that have led investors to seek safe-haven assets.
Recent developments include the US stepping back from imposing tariffs on European allies related to geopolitical strategies. However, there are ongoing threats of a 100% tariff on Canada due to its trade relations with China. Additionally, there is a possibility of tariffs on French wines and champagnes.
On the currency front, a strengthening yen has led to a decline in the US dollar, with markets anticipating potential intervention in the Japanese currency. This has resulted in a reduction in dollar positions ahead of the upcoming Federal Reserve meeting. A weaker dollar benefits holders of other currencies by making gold more affordable.
Additionally, silver prices have surpassed $100 per ounce for the first time, continuing its upward trend from last year. This increase is supported by retail-investor flows and momentum-driven buying, amidst ongoing tightness in physical markets for the metal.
Based on reporting by Al Jazeera.