Gold breaks $5,100 as trade war jitters fuel rush into safe havens

Gold prices have surged to a fresh record above $5,100 an ounce, extending a historic rally as investors pile into the metal amid intensifying geopolitical and trade-related uncertainty.

Spot gold was up 2.2 percent at $5,089.78 per ounce by 06:56 GMT on Monday, after briefly touching an all-time high of $5,110.50 earlier in the session. US gold futures for February delivery rose by a similar margin to $5,086.30 per ounce.

The latest jump builds on an extraordinary run. Gold surged 64 percent in 2025, its strongest annual performance since 1979, driven by a mix of safe-haven demand, easing US monetary policy, heavy central bank buying and record inflows into exchange-traded funds. China extended its buying streak for a 14th consecutive month in December, adding further momentum.

Prices have now set consecutive record highs over the past week and are already up more than 18 percent this year.

Much of the rally is unfolding against the backdrop of mounting global trade disruption. The trade war unleashed by US President Donald Trump, widely seen as the most disruptive since the 1930s, has upended supply chains and driven up costs for businesses worldwide. Since returning to office last January, Trump has imposed sweeping tariffs on both rivals and allies.

In some cases, tariffs have climbed as high as 50 percent, a move Trump has defended by pointing to higher tax revenues. Critics, however, say tariffs are increasingly being used as a geopolitical tool.

Last week, Trump stepped back from threats to impose tariffs on European allies as leverage to take over Greenland, which he has described as vital to US security. Over the weekend, he said he would impose a 100 percent tariff on Canada following its deepening trade ties with China. He has also threatened to slap 200 percent tariffs on French wines and champagnes, apparently to pressure French President Emmanuel Macron into backing his Board of Peace initiative for Gaza.

Currency markets have added another tailwind. A strengthening yen pushed the dollar broadly lower on Monday, with investors bracing for potential intervention in Japan’s currency markets and trimming dollar positions ahead of this week’s Federal Reserve meeting. A weaker dollar tends to boost demand for dollar-priced gold by making it cheaper for buyers using other currencies.

The surge in precious metals has not been limited to gold. Silver climbed above $100 an ounce for the first time on Friday, extending a rally that saw the metal gain 147 percent last year. Analysts point to strong retail investor inflows, momentum-driven buying and persistent tightness in physical silver markets.