The price of gold has soared above $5,000 per troy ounce for the first time in history, reflecting strong demand from investors seeking a “safe-haven” amid rising global economic and geopolitical risks. Spot gold briefly exceeded $5,100 on Monday before settling around similar levels.
Analysts say several factors are driving the record rally. Persistent geopolitical tensions , including contentious U.S. policy moves and dispute threats with Canada and Europe , have spurred flight-to-safety buying. A weaker U.S. dollar and expectations that the Federal Reserve may keep interest rates low have also boosted gold’s appeal relative to other assets.
Investors increasingly view gold not just as a hedge against inflation, but as a strategic hedge against broader market and political instability, prompting strong inflows into bullion, ETFs, and central bank reserves.
This milestone comes after a strong multi-year rally , gold has recorded significant gains in recent years , and many financial institutions had already projected the metal could test or exceed the $5,000 level as part of longer-term uncertainty trends.
