Gold prices surged to record highs above $5,100 an ounce on Monday as investors sought safe-haven assets amid rising international political tensions. Silver and platinum also reached all-time peaks.
Spot gold was up 1.9% at $5,076.43 an ounce by 11:37 a.m. ET (1637 GMT), after briefly touching $5,110.50. U.S. gold futures for February delivery rose 1.9% to $5,074.10.
“Gold continues to benefit from elevated geopolitical and economic uncertainty. Central banks are diversifying reserves and reducing reliance on the U.S. dollar,” said Ryan McIntyre, president of Sprott Inc. He added that investor inflows into physically backed exchange-traded funds have increased about 20% year-on-year.
Geopolitical concerns escalated after U.S. President Donald Trump threatened a 100% tariff on Canada over a China trade deal. Analysts say private investors in Asia and Europe are driving a surge in first-time purchases of gold and silver.
Other factors boosting precious metals include speculation of coordinated currency intervention by U.S. and Japanese authorities and pressure from the Trump administration on Federal Reserve Chair Jerome Powell to lower interest rates. Gold has risen 18% so far this year, after a 64% gain in 2025. Last year, gold surpassed $3,000 and $4,000 per ounce for the first time.
Some analysts, including Societe Generale, predict gold could reach $6,000 per ounce by year-end, while Morgan Stanley sees potential for $5,700.
Spot silver reached a record $113.61 an ounce, breaking $100 last Friday, driven by retail buying and tight physical supply. UBS analyst Giovanni Staunovo noted that high prices could limit industrial demand but short-term gains remain possible.
Spot platinum rose 3% to $2,849.60 after hitting a record $2,918.80, while spot palladium climbed 6.2% to $2,135.22, its highest level since 2022.
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