Following gold’s sharp rise, silver prices have also climbed, hovering around $100–$105 per ounce.

In the first 26 days of this year alone, gold prices have jumped nearly 15%, extending a record-breaking run from 2025, when the metal soared 65% — its biggest annual gain since 1979, CNN reported.

According to reports, the surge in gold prices has come amid heightened global uncertainty following a series of moves by US President Donald Trump. These include now-revoked tariff threats against NATO allies over Greenland, a military operation against Venezuela, and a criminal investigation involving Federal Reserve Chair Jerome Powell.

The rally has also been fuelled by a weaker US dollar, higher-than-expected inflation, and sustained purchases of gold by central banks worldwide.

On Monday, gold prices climbed further to an all-time high of $5,092.71 per ounce.

Commenting on the surge, Robin Brooks, senior fellow at the Brookings Institution, wrote on Sunday: “We’re at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt. Gold is just one of many assets that are getting a ‘safe haven’ bid as part of this phenomenon.”

Susannah Streeter, chief investment strategist at Wealth Club, highlighted the impact of geopolitical tensions and currency weakness on precious metals.

“In this febrile geopolitical environment, gold for now seems to know no bounds. The pile-on into the gilded safe haven is continuing, with the precious metal racing higher. It vaulted over the psychologically important $5,000 mark on a glittering streak, as trade tensions emanating from the US unnerved investors,” she told The Independent.

Lale Akoner, global market analyst at eToro, said gold is increasingly being used as a hedge against equity risk.

“In many portfolios, gold is starting to replace long-duration government bonds as the preferred defensive asset. This shift reflects a structural breakdown in the traditional equity-bond relationship,” she told the newspaper.