Gold has risen above $5,000 an ounce for the first time, continuing a historic surge driven by heightened geopolitical tensions and global economic uncertainty. The precious metal gained more than 60 per cent in 2025 as investors increasingly turned to safe-haven assets.
The rally has been supported by concerns over US trade policy, expectations of interest rate cuts by the US Federal Reserve, a weaker US dollar, and sustained purchases by central banks. Rising inflation and ongoing conflicts in Ukraine and Gaza have also contributed to the strong demand. Silver has followed a similar trend, climbing above $100 an ounce.
Analysts say gold’s appeal lies in its role as a hedge against uncertainty and its relative scarcity. In addition to investment demand, cultural and seasonal buying in major markets such as India and China continues to support prices, although some experts warn that prices could ease if global conditions improve.