Gold hits record above USD 5,100 as geopolitics drive safe‑haven rush

Gold prices marched to record levels above USD 5,100 on Monday, as investors sought a safe haven amid international political tension, and silver and platinum also scaled all-time highs.

Spot gold was up 2% at USD 5,077.22 an ounce by 1:31 p.m. ET (1831 GMT) after hitting a record USD 5,110.50. US gold futures for February delivery settled 2.1% higher at USD 5,082.50.

“Gold prices continue to be supported by elevated geopolitical and economic uncertainty. Central banks remain strong buyers as they diversify foreign exchange reserves and reduce reliance on the US dollar,” said Ryan McIntyre, president at Sprott Inc.

“In addition, investor inflows into physically backed exchange‑traded funds have resumed, with holdings up approximately 20% year over year,” McIntyre added.

TRUMP’S 100% TARIFF THREAT ON CANADA

In the latest geopolitical flare‑up, US President Donald Trump said on Saturday he would impose a 100% tariff on Canada if it follows through on a trade deal with China.

For precious metals this year, the major drivers are going to be “Trump and Trump,” said Adrian Ash, head of research at online marketplace BullionVault.

“A wave of new first-time investing is driving this move in precious metals. It’s led by private investors across Asia and Europe, rushing to build their personal holdings of gold and silver.”

The possibility that a coordinated currency intervention by US and Japanese authorities could be imminent was another focus of investor attention.

At the same time, this week’s Federal Reserve meeting, when the central bank is expected to hold rates steady, is overshadowed by a Trump administration criminal investigation of Fed chairman Jerome Powell.

Trump has placed pressure on Powell to lower interest rates.

That would support non-yielding gold, which has risen nearly 18% so far this year after gaining 64% in 2025.

Last year, gold breached major milestones, including USD 3,000/oz and USD 4,000/oz for the first time.

GOLD MAY REACH USD 6,000/OZ BY YEAR-END, SOME ANALYSTS SAY

Analysts see room for further upside momentum. Societe Generale anticipate gold will reach USD 6,000/oz by year‑end, though they caution this may be a conservative estimate with scope for further gains. Meanwhile, Morgan Stanley said the rally could continue, highlighting a bull‑case target of USD 5,700.

Spot silver scaled a new record high of USD 117.69 an ounce and was last up 10.2% at USD 113.46. Prices broke the USD 100 mark on Friday as retail investor and momentum-driven buying added to tightness in physical markets for the precious and industrial metal.

“Momentum is strong, with Chinese silver prices at a notable premium to London prices, indicating further gains in the short term are possible. However, such high prices should reduce industrial demand,” said UBS analyst Giovanni Staunovo.

Spot platinum rose by 1.8% to USD 2,816.38 an ounce after touching a record USD 2,918.80 while spot palladium climbed by 5.9% to USD 2,127.68, the highest levels since 2022.

(Reporting by Ashitha Shivaprasad and Anmol Choubey in Bengaluru, additional reporting by Swati Verma; Editing by Barbara Lewis, Bernadette Baum, and Shailesh Kuber)