Gold Smashes $5,100 as Investors Flee to Safety Amid Global Turmoil

Gold surged past $5,100 an ounce on Monday, hitting a fresh all-time high as investors rushed into the metal amid escalating geopolitical tensions and growing uncertainty around US policy.

The rally marks gold’s strongest annual performance since 1979, with prices up 64% in 2025 so far. The surge has been fueled by safe-haven demand, expectations of US monetary easing, aggressive central-bank buying — including China’s 14th straight month of purchases in December — and record inflows into gold-backed exchange-traded funds.

Gold has set multiple record highs over the past week alone and is already up more than 18% this year.

Market analysts point to waning confidence in US leadership as a key driver. According to Kyle Rodda, senior market analyst at Capital.com, erratic policy signals from the Trump administration have triggered a “crisis of confidence” in US assets, pushing investors toward gold as a reliable alternative.

Recent policy reversals and tariff threats — including potential penalties on Canada, Europe, and French luxury exports — have unsettled markets, while concerns persist that new diplomatic initiatives could undermine established international institutions.

At the same time, a strengthening yen pressured the US dollar lower, making dollar-priced gold more attractive to global investors ahead of this week’s Federal Reserve meeting.

Analysts remain bullish. Some expect gold prices to approach $6,000 per ounce this year, citing intensifying global risks and sustained demand from both central banks and retail investors. While short-term pullbacks are possible, experts believe any dips will be quickly met with strong buying interest.

The rally has spread across precious metals. Silver jumped nearly 5%, extending its breakout above the $100 level for the first time, while platinum and palladium also climbed to multi-year or record highs amid tight physical supply and strong speculative demand.