Gold prices have surged to a record high of more than $5,100 an ounce, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical uncertainties.

Spot gold was up 2.2 percent at $5,089.78 per ounce by 06:56 GMT on Monday, after earlier touching an all-time high of $5,110.50.

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US gold futures GCcv1 for February delivery also gained the same amount to $5,086.30 per ounce.

The metal soared 64 percent in 2025, its biggest annual gain since 1979, driven by safe-haven demand, US monetary policy easing, robust central bank purchases, including China’s 14th straight month of buying in December, and record inflows into exchange-traded funds.

Prices have set consecutive record peaks over the past week and have already risen more than 18 percent this year.

Global trade disruptions

The continued rise in gold prices comes as the trade war, the most disruptive since the 1930s, unleashed by US President Donald Trump, has upended supply chains and raised business costs. Since taking office last January, the Trump administration has imposed tariffs on rivals and allies alike.

Most countries are reeling from the high tariff, in some cases up to 50 percent, as Trump has boasted tariffs have increased the tax revenue for the government.

Trump has also been accused of weaponising tariffs for geopolitical gains. He stepped back on Wednesday from threats to impose tariffs on European allies as leverage to take over Greenland, which he says is critical for US security.

Over the weekend, he said he would impose a 100 percent tariff on Canada, which boosted trade ties with China.

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He has also threatened to hit French wines and champagnes with 200 percent tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his Board of Peace initiative for Gaza.

Meanwhile, a rising yen dragged the dollar broadly lower on Monday, with markets on alert for possible intervention in the Japanese currency and investors cutting dollar positions in advance of this week’s Federal Reserve meeting.

A weaker dollar makes greenback-priced gold more affordable for holders of other currencies.

Silver climbed above the $100 an ounce mark for the first time on Friday, building on its 147 percent rise last year as retail-investor flows and momentum-driven buying compounded a prolonged spell of tightness in physical markets for the metal.