The price of gold has passed $5,000 (€4,220) for the first time as investors flock to the haven asset amid rising geopolitical tensions and mounting concerns over fiscal spending in developed economies.
Gold rose as much as 2.1 per cent on Monday to $5,093 a troy ounce, extending a rally that has driven the price up more than 17 per cent this year as investors look for safety in precious metals. Gold recorded its best week since the 2008 financial crisis last week.
A historic bullion rally over the past two years has been driven by a surge of investor interest and central banks seeking assets outside the dollar.
“This is an option for investors to diversify their exposure to monetary and fiscal policy uncertainty,” said Samantha Dart, co-head of global commodities research at Goldman Sachs.
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The speed of gold’s rally has confounded even the most optimistic expectations.
“Every time someone comes up with a forecast for gold that looks aggressive, it hits within weeks,” said Tai Hui, chief Asia-Pacific market strategist at JPMorgan Asset Management. “The policy environment continues to point to the uncertainty of the new world order.”
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Silver and platinum prices rose 3.7 per cent and 2 per cent, respectively, to record highs, while the dollar dropped 0.5 per cent against a basket of key trading partners including the pound and euro.
Analysts said rising bond yields in Japan last week over concerns about the country’s ambitious spending plans had added to the upward pressure on bullion prices.
“This is related to what is happening in the Japanese bond market because gold is seen as a safe haven,” said Dart.
A weakening dollar also drove renewed demand.
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“Commodities and precious metals often strengthen when the dollar is weaker,” said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management.
Dollar weakness can boost gold by making it cheaper to buy in other currencies. The dollar fell 1.1 per cent against the yen to trade around ¥154 on Monday on speculation of intervention to support the Japanese currency.
“It’s the yen move that’s helping gold and base metals,” Mr Bhayani said. – Copyright The Financial Times Limited 2026
