Gold rallied to an all-time high on Monday, exceeding the $5,000 an ounce milestone as investors increased allocations to the precious metal amid mounting geopolitical tensions. The move extended a pronounced rally that has pushed the yellow metal to unprecedented levels.
Market participants cited safe-haven demand in response to intensifying geopolitical friction. In particular, sources noted that escalating tensions between the U.S. and NATO over Greenland have contributed to the metal's strong performance this year, amplifying expectations of further financial and geopolitical uncertainty.
The price surge has been dramatic: gold has climbed 64% during 2025. Analysts and traders point to several factors that have underpinned that advance. Easing in U.S. monetary policy has been a key driver, while persistent central bank demand has supported the market. China continued to add to official reserves, extending its gold-buying streak for a fourteenth month in December. At the same time, the market has seen record inflows into exchange-traded funds focused on gold, further bolstering prices.
Independent analyst Ross Norman offered a formal forecast for the year, saying, "Our forecast for the year is that gold will see a high of $6,400 an ounce with an average of $5,375." The projection was presented as part of market commentary on the factors sustaining the rally.
Investors and institutions tracking the bullion market will be watching whether the combination of geopolitical strain, central bank purchases and ETF inflows continues to support prices at or above current levels. For now, the market's momentum has pushed gold into uncharted territory, with the $5,000 threshold serving as the latest benchmark in an already historic advance.
Key context:
- Gold topped $5,000 an ounce on Monday, marking a record high.
- The metal has risen 64% in 2025, backed by U.S. monetary policy easing, sustained central bank demand, and record ETF inflows.
- China extended its gold-buying streak to a fourteenth month in December, contributing to central bank demand.
- Independent analyst Ross Norman forecasts a yearly high of $6,400 an ounce and an average price of $5,375.