For the first time ever, the price of gold has surpassed $5,000 (£3,659) per ounce, continuing a historic boom that saw the precious metal increase by more than 60% in 2025. It occurs at a time when growing worries about geopolitical and financial instability have been exacerbated by tensions between the US and NATO over Greenland.
Markets are also concerned about US President Donald Trump’s trade policy. He threatened on Saturday to impose a 100% tariff on Canada should it reach a trade agreement with China. Investors purchase gold and other precious metals as “safe-haven” assets during unsettled times. Building on its nearly 150% increase last year, silver reached $100 an ounce on Friday for the first time.
A number of additional factors, such as higher-than-normal inflation, the weak US dollar, purchases by central banks worldwide, and the US Federal Reserve’s anticipated interest rate decrease this year, have also increased demand for precious metals.
Gold prices have increased as a result of the wars in Gaza and Ukraine, as well as Washington’s capture of Venezuelan President Nicolás Maduro. The relative scarcity of gold is one of its main draws. The World Gold Council trade association claims that just about 216,265 tonnes of the metal have ever been mined.
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