Gold has climbed past $5,000 an ounce for the first time in history, extending a strong rally that has seen the precious metal gain over 60% in 2025.
The surge reflects growing concerns across global markets, fueled by geopolitical tensions, economic uncertainty, and sustained central bank purchases.
Investors have been unsettled by rising friction between the United States and NATO over Greenland, aggressive US trade policies, and ongoing conflicts in Ukraine and Gaza.
The recent seizure of Venezuelan President Nicolás Maduro by US authorities has further heightened international instability, reinforcing gold’s appeal as a safe-haven asset.
Other precious metals are also benefiting. Silver surpassed $100 an ounce last Friday, building on gains of nearly 150% last year.
Persistent inflation, a weakening US dollar, and expectations of further US Federal Reserve rate cuts have also boosted demand for non-yielding assets like gold.
Central banks have continued to increase their bullion reserves, while seasonal and cultural demand from major consumers such as India and China has added upward pressure.
Analysts note that gold remains attractive as it is not tied to debt or corporate performance, offering security amid unpredictable markets.
Despite the rally, experts caution that the price could correct if global conditions improve.
Nevertheless, gold’s scarcity and status as a store of value suggest that it will remain a key investment choice during times of uncertainty.
Nicholas Frappell, head of institutional markets at ABC Refinery, said, “Gold is a strong diversifier in a world that feels increasingly unpredictable.”
With structural, geopolitical, and seasonal factors aligning, analysts say the precious metal could maintain its record levels well into 2026.
