Gold breaks $5,000 record
Investors rush to safe haven amid global risks
Spot gold surged past $5,000 an ounce, marking an unprecedented high as investors rushed into the safe‑haven metal amid intensifying geopolitical tensions and economic uncertainty. Gold rose 0.75% to $5,019.85 per ounce, while U.S. February futures gained 0.84% to $5,020.60. Analysts linked the rally to escalating friction between the U.S. and NATO over Greenland, expectations of further market volatility, and a broader shift toward risk‑off assets.
The rally builds on hefty gains last year—gold climbed 64% in 2025—supported by U.S. monetary easing, robust central bank purchases (including a fourteenth consecutive month of net buys by China in December) and record inflows into gold‑backed exchange‑traded funds. A softer U.S. dollar and falling real yields have further lowered the opportunity cost of holding non‑yielding bullion, boosting international demand. Spot silver jumped 2.52% to $105.54 an ounce, while platinum and palladium showed mixed moves.
Official sector accumulation and inflows from institutional and retail investors amplified momentum as the price crossed psychological thresholds, drawing fresh speculative and physical demand for bars and coins. Wealth managers reported rising allocations to gold for portfolio protection, and mining stocks rallied on the price surge—even as producers and industry experts warned higher prices do not immediately translate to swifter supply growth due to long project lead times, regulatory hurdles and rising costs.
Market participants warned the speed of the advance raises the risk of sharp corrections if sentiment flips or if geopolitical strains de‑escalate. Key variables for gold’s path include the evolution of geopolitical tensions, central bank policy directions balancing growth and inflation, and currency and real‑yield dynamics. For now, the break above $5,000 underscores gold’s role as a barometer of investor anxiety and as a preferred hedge amid heightened global uncertainty.
