Gold prices have surged to unprecedented levels, reaching a record high above $5,100 an ounce on Monday. This surge extends a historic rally as investors seek refuge in the safe-haven asset amidst escalating geopolitical uncertainties. Spot gold was up 2.2% at $5,089.78 per ounce by 0656 GMT, after earlier touching an all-time high of $5,110.50. U.S. gold futures for February delivery also gained the same amount to $5,086.30 per ounce.
The precious metal’s ascent is fuelled by a confluence of factors, including safe-haven demand, expectations of easing U.S. monetary policy, consistent central bank purchases – notably China’s continued buying for the fourteenth consecutive month in December – and substantial inflows into exchange-traded funds. According to Kyle Rodda, a senior market analyst at Capital.com, recent erratic decisions from the U.S. administration have triggered a crisis of confidence, further driving investors towards gold.
Other precious metals also experienced significant gains. Spot silver advanced 4.8% to $107.903, after hitting a record of $109.44. Spot platinum climbed 3.4% to $2,861.91 per ounce, after hitting a record high of $2,891.6 earlier in the session, while spot palladium was 2.5% higher at $2,060.70, having touched a more than three-year high. Silver surpassed the $100 mark on Friday, building on its 147% rise last year as retail-investor flows and momentum-driven buying compounded a prolonged tightness in physical markets for the metal.
Analysts anticipate further upside for gold, with some forecasting prices to potentially reach $5,500 later in the year. Despite likely periodic pullbacks as investors secure profits, experts expect strong buying interest to quickly follow any corrections, underpinning continued growth in the gold market.
