Analysts expect gold to remain strong, with some forecasts predicting its price to reach near $5,200 per ounce by year-end
Gold prices jumped to a fresh record on Monday, crossing $5,100 an ounce, as investors sought safety amid rising global tensions and economic concerns.
Spot gold climbed about 2.4% before easing slightly, while US futures also moved higher.
The rally comes as geopolitical risks grow across several regions, including tensions linked to Greenland, the Middle East, and other global flashpoints. These concerns have pushed investors toward gold, which is traditionally seen as a safe place to park money during uncertain times.
The surge was also driven in part by worries about looming 100% tariffs on Canada and the risk of a partial government shutdown over ICE funding.
Silver also surged, jumping nearly 5%, supported by strong industrial demand and increased investor interest.
Analysts say both institutional and retail investors continue to buy heavily. Banks note that demand is no longer limited to traditional buyers.
Exchange-traded funds have added large volumes of gold this year, while wealthy investors are increasing physical purchases to protect against economic risks.
Central banks are also playing a major role. They are buying around 60 tonnes of gold per month, far above historical averages, pushing it up more than 80% over the past year.
Cash holdings are less attractive to investors amid stubborn inflation and rising government debt. At the same time, concerns are growing that equity valuations may be stretched. Lower interest rates have further dampened bond returns, making them less attractive for cash holdings.
Looking ahead, analysts expect gold prices to remain strong, with some forecasts predicting its price close to $5,200 per ounce by year-end.