Gold prices surged to a new all-time high on Monday, breaking above the $5,100 per ounce mark as investors increasingly seek protection from escalating geopolitical and fiscal risks around the world.
Spot gold climbed as much as 2.4% to trade at $5,102 per ounce before easing slightly to around $5,086. U.S. gold futures for February delivery also advanced, rising 2.1% to approximately $5,087 per ounce.
The latest rally extends gold’s remarkable record-breaking run, driven by growing uncertainty across multiple regions, including tensions linked to Greenland, Venezuela and the Middle East.
Analysts say these developments have reinforced gold’s long-standing role as a hedge against global instability.
In a recent note, HSBC attributed the renewed surge in precious metals partly to emerging geoeconomic risks, particularly those connected to Greenland, which have unsettled investor confidence.
Other precious metals followed gold’s upward trajectory.
Silver jumped nearly 5% to $107.9 per ounce, buoyed by both safe-haven demand and strong industrial usage. Platinum also continued its rally, hitting fresh record levels.
Market analysts at Union Bancaire Privée noted that the sustained rise in prices reflects robust demand from both institutional and retail investors.
The bank expects gold’s momentum to continue, projecting a year-end price target of $5,200 per ounce.
Goldman Sachs has also turned more bullish on the metal, recently raising its December 2026 forecast to $5,400 per ounce, up from a previous estimate of $4,900.
The investment bank said gold demand has expanded beyond traditional buyers, with Western exchange-traded funds increasing holdings by roughly 500 tonnes since early 2025.
According to Goldman, high-net-worth individuals and families are increasingly turning to physical gold and alternative hedging instruments to protect against macroeconomic and policy-related risks, making demand more resilient.
Central banks continue to play a significant role in supporting prices.
Goldman estimates that central-bank gold purchases are averaging around 60 tonnes per month, far exceeding the pre-2022 average of 17 tonnes, as many emerging-market economies shift reserves away from traditional currencies.
Analysts believe these trends are unlikely to reverse soon.
Unlike election-related hedges that faded after the 2024 U.S. elections, concerns over fiscal sustainability and long-term macroeconomic risks are expected to persist well into 2026, keeping gold firmly in favour among global investors.
