The price of gold — widely regarded as a safe-haven asset — has eclipsed $5,000 an ounce for the first time on record, driven by intensifying global uncertainty and market volatility.
Spot gold climbed above this unprecedented threshold over the weekend, buoyed by geopolitical tensions, slowing investor confidence in traditional asset classes and pressure on the US dollar. Analysts say the milestone underscores growing fears among global investors and a rush toward protective assets.
Key Drivers Behind the Rally
- Geopolitical Stress: Ongoing conflicts, trade tensions and political instability have heightened risk aversion among investors, prompting increased demand for gold.
- Weakening Dollar and Monetary Policy Concerns: A softer US dollar and uncertainty surrounding future Federal Reserve actions have further bolstered gold’s appeal as a hedge.
- Central Bank and Investor Appetite: Sustained buying by central banks, particularly in emerging markets, and record inflows into gold-backed exchange-traded funds have supported prices.
In addition to gold’s historic surge, other precious metals like silver have also hit record levels, reflecting a broader shift in investor preference toward hard assets in times of economic stress.
Market strategists suggest that while occasional pullbacks are possible, the prevailing conditions could sustain gold’s upward momentum further into 2026.