Gold prices have crossed $5,000 an ounce for the first time ever, extending a historic rally that began last year. The precious metal gained more than 60% in 2025 and continues to rise in early 2026.
The surge comes as investors worry about growing geopolitical and financial risks. Recent tensions between the US and NATO over Greenland, along with ongoing wars in Ukraine and Gaza, have increased market uncertainty.
US trade policy has also raised concerns. President Donald Trump has warned of steep tariffs on Canada if it signs a trade deal with China, adding pressure to global markets.
Gold is widely seen as a safe-haven asset. Investors often buy it when markets look unstable. Silver has also surged, topping $100 an ounce for the first time on Friday.
High inflation, a weaker US dollar, and strong buying by central banks have further boosted demand. Investors also expect the US Federal Reserve to cut interest rates again this year, which usually supports gold prices.
Gold’s limited supply adds to its appeal. Around 216,000 tonnes have ever been mined, according to the World Gold Council. The US Geological Survey estimates that only about 64,000 tonnes remain underground.
Central banks have played a major role in the rally. Many countries are reducing their reliance on the US dollar and increasing gold reserves instead.
Gold demand is also strong outside financial markets. In countries like India and China, gold is widely bought for festivals, weddings, and cultural traditions. Indian households alone hold gold worth trillions of dollars.
Analysts warn that gold prices could fall if global tensions ease. However, for now, uncertainty continues to push investors toward the precious metal.
