The price of gold has achieved a historic milestone, breaking through the $5,000 per ounce barrier for the very first time. This remarkable surge underscores the precious metal's enduring appeal as a safe-haven asset during periods of global instability.
Record-Breaking Rally Continues
On Monday morning, the spot price of gold jumped decisively above $5,000 an ounce, equivalent to approximately £3,662. It later stabilised around $5,094 (£3,730) per ounce, cementing its position at an unprecedented level. This latest peak is part of an extraordinary bull run that began last year, during which the value of gold appreciated by more than 60%.
Drivers of the Surge
Investors have been flocking to gold in response to persistent financial and geopolitical anxieties. Concerns have been particularly elevated at the start of the year, fuelled by tensions between the United States and NATO concerning Greenland. Although threats of tariffs have since de-escalated somewhat, the initial uncertainty prompted significant movement into precious metals.
Analysts note that gold has also been bolstered in recent weeks by a weakening US dollar, which last week delivered its poorest weekly performance since May. Several financial market experts have indicated that some nations have been reducing their exposure to the dollar amid the prevailing geopolitical climate.
Expert Commentary on Market Sentiment
Ipek Ozkardeskaya, a senior analyst at Swissquote, provided insight into the fragile market recovery. "US and European equities rebounded following the de-escalation, though the recovery remains limited and fragile: the next shock is a matter of when, not where," she stated.
Ozkardeskaya elaborated on the broader context, "The global order is shifting, and trust is gone. Against this backdrop, investors continue to flock to precious metals. Gold surged past the 5,000 dollar mark early Monday — a clear signal that risk appetite has not returned."
This historic price movement signals that, despite brief market rebounds, deep-seated caution continues to drive investment strategies towards traditional stores of value like gold.
