Gold continued to push to fresh highs on Monday as investors and official buyers sought refuge amid heightened geopolitical risks and market turbulence tied to U.S. political developments. Spot gold was 2.2% higher at $5,092.13 an ounce by 1105 GMT after earlier touching a record $5,110.50. U.S. gold futures for February delivery rose in step to $5,090.70.
The metal posted an outsized gain in 2025, climbing 64% for the year and marking its largest annual increase since 1979, driven by strong safe-haven demand, expectations of easier U.S. monetary policy, robust central bank purchases and record inflows into exchange-traded funds. Prices have also advanced roughly 18% since the start of this year.
Market participants point to uncertainty around U.S. policy and related geopolitical flashpoints as a key catalyst for the rally. "U.S. President Donald Trump and the uncertainty he creates on multiple levels remain the main driver of surging prices and investment momentum driven by a fear of missing out," said Ole Hansen, head of commodity strategy at Saxo Bank. The president's latest tariff threats included a statement that he would impose a 100% tariff on Canada if it follows through on a trade deal with China.
Currency moves reinforced demand for dollar-priced metals. The yen strengthened to a two-month peak against the dollar amid speculation about possible U.S.-Japan intervention, while traders pared back dollar positions ahead of this week’s Federal Reserve meeting and the potential announcement of a new Fed chair. The dollar index fell to a four-month low, a weaker dollar that tends to make metals priced in dollars more attractive to overseas buyers.
Analysts say gold may still have room to rise this year. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said further upside cannot be ruled out in stress scenarios, especially if confidence in currencies or financial assets weakens further, though he warned such moves could be accompanied by sharp interim corrections.
Technical indicators suggest immediate upside potential. Reuters technical analyst Wang Tao noted that spot gold has cleared resistance at $5,070 and is expected to move into a range of $5,154 to $5,206 an ounce, with a possible eventual climb to $5,427.
Other precious metals also reached new peaks. Spot silver rose to a record $110.11 an ounce and was last up 6.2% at $109.28. Silver first moved above $100 on Friday, building on a 147% gain last year amid retail flows, momentum-driven buying and prolonged tightness in physical markets.
Spot platinum jumped 5% to $2,905.74 an ounce after earlier touching a record $2,918.80. Spot palladium climbed 5.7% to $2,125.50, after registering a more than three-year high of $2,142.70.
Markets remain sensitive to developments that could shift investor risk appetite, central bank buying patterns and currency valuations. Upcoming policy moves and political statements are likely to influence the near-term trajectory of precious metals prices.