Washington, United States. Gold prices extended a record-setting rally on Monday, rising past $5,100 as central banks and investors sought protection from geopolitical risks and market volatility tied to U.S. President Donald Trump.
Gold hits fresh records
Spot gold was up 2.2% at $5,091.61 an ounce by 1140 GMT after reaching a record $5,110.50. U.S. gold futures for February delivery gained 2.2% to $5,089.90.
Strong gains driven by demand and policy expectations
Gold rose 64% in 2025 for its biggest annual gain since 1979, supported by safe-haven demand, U.S. monetary policy easing, strong central bank purchases and record inflows into exchange-traded funds. Prices have risen about 18% since the start of this year.
Tariff threats and currency moves add to volatility
Ole Hansen, head of commodity strategy at Saxo Bank, said Trump and the uncertainty he creates remain the main driver of higher prices, alongside investment momentum driven by fear of missing out. Trump said on Saturday he would impose a 100% tariff on Canada if it proceeds with a trade deal with China.
The yen rose to a two-month high against the dollar as speculation increased over possible U.S.-Japan intervention, while investors also unwound dollar positions ahead of this week’s Federal Reserve meeting and a possible announcement of a new Fed chair.
Weaker dollar supports precious metals
The dollar index fell to a four-month low, making dollar-priced metals more attractive to overseas buyers.
Outlook points to potential for further gains
Analysts said gold could climb further this year, potentially toward $6,000, on mounting global tensions and strong demand from central banks and consumers. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said further gains cannot be ruled out in stress scenarios, particularly if confidence in currencies or financial assets weakens further, while noting such moves could come with sharp interim corrections.
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