Gold hits new record above $5,000. Here’s what’s driving the surge

Gold prices have surged to historic highs, crossing $5,100 an ounce for the first time, as investors rush into safe-haven assets amid escalating geopolitical tensions and policy uncertainty linked to U.S. President Donald Trump.

Spot gold rose as much as 2.1% on Monday to a record $5,110.50 an ounce, before easing slightly to $5,087.39 by mid-morning GMT, according to Reuters. U.S. gold futures climbed in tandem to around $5,085 an ounce.

The rally caps a dramatic run for the precious metal. Gold has jumped about 15% in the first 26 days of 2026, building on a 64–65% surge in 2025, its strongest annual performance since 1979.

What’s driving the surge

Gold is widely viewed as a refuge in times of uncertainty, and analysts say the latest gains reflect deepening investor anxiety.

Other precious metals have followed gold higher. Silver climbed above $110 an ounce, extending gains after breaking the $100 mark for the first time last week, while platinum and palladium also touched record or multi-year highs.

U.S. President Donald Trump and the uncertainty he creates on multiple levels remain the main driver of surging prices and investment momentum, Ole Hansen, head of commodity strategy at Saxo Bank, told CNN, pointing to fear of missing out among investors.

Markets have been rattled by a series of abrupt foreign and domestic policy moves. In recent weeks, Trump has threatened sweeping tariffs against allies, including a warning on Saturday that the U.S. could impose 100% tariffs on Canadian imports if Ottawa pursued a trade deal with China. He has also reignited tensions with Europe over Greenland, launched a military operation against Venezuela, and stepped up attacks on the Federal Reserve.

Domestically, uncertainty has been compounded by a criminal investigation into Federal Reserve Chair Jerome Powell, a development that has raised concerns about the political independence of the U.S. central bank, according to Reuters.

A weaker U.S. dollar has added fuel to gold’s rise. The dollar index has slipped to a four-month low, making dollar-priced metals more attractive to overseas buyers, Reuters reported. Investors are also positioning ahead of this week’s Federal Reserve meeting amid expectations of further interest-rate cuts.

Analysts remain broadly bullish. Before the latest surge, Goldman Sachs raised its gold price forecast to $5,400 an ounce, citing “lingering global policy uncertainty,” according to a research note cited by Reuters. Bank of America’s chief investment officer Michael Hartnett said in a separate note that prices could peak above $6,000.

Still, some caution that volatility could intensify. “Further upside cannot be ruled out in stress scenarios,” Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, told Reuters, adding that sharp corrections could accompany any further surge.