Gold prices climbed to a fresh historic high above $5,000 per ounce on Monday, extending a powerful rally as investors rushed into the safe-haven metal amid rising geopolitical and trade uncertainties.

Spot gold jumped 1.79% to $5,071.96 per ounce by 0159 GMT after touching an intraday peak of $5,085.50. US gold futures for February delivery also rose 1.79% to $5,068.70 per ounce, reflecting strong global demand.

The precious metal has now gained around 64% in 2025, supported by expectations of US monetary policy easing, heavy central bank buying, and record inflows into gold-backed exchange-traded funds. China has continued to boost its reserves, marking its fourteenth consecutive month of gold purchases in December, further strengthening prices.

Market sentiment has been rattled by escalating geopolitical and trade risks. US President Donald Trump recently stepped back from tariff threats against European allies linked to Greenland, but renewed warnings of a 100% tariff on Canada if it proceeds with a trade deal with China. He also threatened 200% tariffs on French wines and champagne, adding to global uncertainty.

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Meanwhile, a strengthening Japanese yen pushed the dollar lower ahead of this week’s Federal Reserve meeting. A weaker dollar typically makes gold cheaper for holders of other currencies, boosting demand.

Analysts remain optimistic. Philip Newman, director at Metals Focus, said gold prices could peak near $5,500 later this year, noting that any short-term pullbacks are likely to be brief due to strong underlying buying interest.

Other precious metals also rallied sharply. Spot silver surged 4.57% to $107.65 per ounce after hitting a record $108.60, while platinum and palladium posted solid gains amid tight supply conditions.