Gold Breaks the $5100 Barrier: A Historic Rise Amid Global Turmoil
Gold continued its relentless upward trajectory, reaching an unprecedented record after surpassing the $5100 per ounce mark, in a historic leap reflecting the increasing anxiety in global markets amid rising geopolitical tensions and a weakening US dollar.
As of 03:23 GMT, the price of gold in spot transactions rose by 1.98% to $5081.18 per ounce, after earlier touching $5092.71.
US gold futures for February delivery also increased by 2.01% to $5079.30 per ounce, according to Reuters data.
* Historic Leap Supported by Central Banks and Investors
The yellow metal achieved remarkable gains of 64% during 2025, supported by a broad influx of investors seeking a safe haven, alongside the easing of US monetary policy and strong purchases from central banks, with China continuing to buy gold for the fourteenth consecutive month until last December.
Exchange-traded funds backed by gold recorded record inflows, as prices rose by more than 17% since the beginning of 2026.
* Crisis of Confidence in the US Administration Fuels Gold Demand
Kyle Roda, senior market analyst at Capital.com, stated that the primary driver of this leap is the "escalating crisis of confidence in the US administration and US assets," noting that the erratic decisions made by President Donald Trump's administration in recent times have deepened uncertainty.
Trump had unexpectedly backed down from his threat to impose tariffs on European allies to pressure them into controlling Greenland, before later announcing his intention to impose a 100% tariff on Canada if it adhered to a trade agreement with China.
He also threatened to impose a 200% tariff on French wine and champagne to pressure French President Emmanuel Macron to join his initiative called the "Council of Peace," a move that observers believe could undermine the role of the United Nations in resolving international conflicts.
Roda added:
"The Trump administration has created a permanent rift in the way things are done globally, and therefore everyone is now turning to gold as the only alternative."
* Weak Dollar Enhances the Appeal of the Yellow Metal
In this context, the rise of the Japanese yen has led to a widespread decline of the dollar, with markets anticipating potential intervention in the currency market, in addition to investors reducing their dollar positions ahead of this week's Federal Reserve meeting.
The weakness of the dollar contributes to making gold, priced in US currency, more attractive to holders of other currencies.
* Expectations for Further Rise Towards $5500
For his part, Philip Newman, director of Metals Focus, predicted the continuation of the upward trend, saying:
"We expect further increases, and our estimates indicate that prices could peak at around $5500 per ounce later this year."
He added that the market may witness temporary corrections due to profit-taking, but these will be short-lived and are likely to be met with strong buying waves.
* Metal Madness Extends to Silver, Platinum, and Palladium
The rise was not limited to gold alone, as silver saw a strong jump of 5.79% to $108.91 per ounce, after reaching a record of $109.44.
Silver's gains have exceeded 50% since the beginning of 2026, after rising by 147% last year, driven by inflows from individual investors and a shortage of supply in physical markets.
The price of platinum also rose by 3.77% to $2871.40 per ounce, after reaching a record level of $2891.6, while palladium increased by 3.2% to $2075.30 per ounce, its highest level in over three years.
