Gold prices surged to unprecedented levels on Monday, climbing above $5,100 an ounce as investors intensified a global rush toward safe-haven assets amid mounting geopolitical and economic uncertainty.
The rally marked a continuation of a record-breaking trend, with gold extending gains built over the past year as political flashpoints, trade tensions, and policy risks weighed on markets worldwide.
Spot gold rose more than 2% in early U.S. trading, while futures prices tracked closely behind, underscoring the strength and breadth of demand.
Silver, platinum, and palladium also climbed sharply, reflecting a synchronized move across precious metals rather than an isolated spike in gold.
The surge has been fueled by an accumulation of international risks that have reinforced gold’s traditional role as a hedge against instability.
Among the latest developments, U.S. President Donald Trump warned he would impose a 100% tariff on Canada should it proceed with a trade agreement with China, adding to uncertainty in global trade relations.
Investors also focused on the possibility of coordinated currency intervention by U.S. and Japanese authorities, further unsettling foreign exchange markets.
At the same time, attention turned to a Federal Reserve meeting expected to keep interest rates unchanged, occurring against the backdrop of a Trump administration criminal investigation into Fed Chair Jerome Powell.
Trump has publicly pressured Powell to lower rates, a stance that would typically support non-yielding assets such as gold.
Analysts noted that political flashpoints spanning Greenland, Venezuela, and the Middle East have compounded investor unease rather than emerging as isolated shocks.
Market participants pointed to a widening demand base that now includes central banks, institutional investors, and private buyers across Asia and Europe.
Central banks have continued to accumulate gold to diversify reserves and reduce reliance on the U.S. dollar, while inflows into physically backed exchange-traded funds have resumed.
Retail and momentum-driven buying has also tightened physical markets, particularly in silver, which recently broke the $100 threshold.
Some banks now forecast further upside, with year-end targets ranging from above $5,200 to as high as $6,000 an ounce, suggesting the rally may reflect a structural shift rather than a short-lived surge.