Gold climbed above $5,000 an oz for the primary time, extending a rally that noticed the steel rise greater than 60% in 2025.
The transfer got here as tensions between the US and NATO over Greenland added to broader monetary and geopolitical uncertainty.
US President Donald Trump’s commerce insurance policies additionally weighed on markets, together with a Saturday risk to impose a 100% tariff on Canada if it strikes a commerce take care of China.
Costs and the flight to security
Spot gold gained 2.4% to commerce at $5,102 an oz earlier than easing to $5,086.
US gold futures for February rose 2.1% to $5,087.
Silver additionally rallied, with spot costs up 4.9% to $107.9 an oz after topping $100 on Friday for the primary time.
What’s driving demand
Analysts pointed to higher-than-usual inflation, a weaker US greenback, central-bank shopping for, and expectations that the US Federal Reserve will reduce rates of interest once more this yr.
The Fed is extensively anticipated to chop its foremost rate of interest twice this yr.
Nicholas Frappell, international head of institutional markets at ABC Refinery, mentioned:
“While you personal gold, it’s not hooked up to the debt of any person else like a bond is or an fairness the place the efficiency of an organization will drive efficiency.”
Shortage and central-bank shopping for
Solely round 216,265 tonnes of gold have ever been mined, in line with the World Gold Council.
The US Geological Survey estimates one other 64,000 tonnes might nonetheless be mined from underground reserves, although provide is predicted to plateau.
Central banks added a whole bunch of tons of bullion to reserves final yr, the World Gold Council mentioned.
Morgan Stanley estimated Indian households held $3.8tn of gold, equal to 88.8% of India’s GDP.