Gold storms above $5,000 for the primary time as world turmoil fuels ‘astonishing’ rally

Gold stormed past the $5,000 an ounce mark for the first time today as global upheaval sent investors to the apparent safety of precious metals.

On another record-breaking day, bullion rose has high as $5,110 while silver topped $110 having reached $100 an ounce for the first time on Friday.

Gold enjoyed its best year since 1979 last year and is up 18 per cent so far this year – putting it on course for its strongest month in four decades.

While central bank buying helped start the astonishing run, it is now being driven higher by Donald Trump’s reshaping of the global order and mounting geopolitical tensions as well as a ‘fear of missing out’ among investors in what has been dubbed ‘gold-plated FOMO’.

Gold is on course for its best month for 40 years

The rally was turbocharged last week by Trump’s plans to seize control of Greenland, and while the US President has dropped his threat of extra tariffs on a host of European countries including the UK, over the weekend he said he would impose a 100 per cent levy on Canadian goods if it follows through on a trade deal with China.

Meanwhile, the dollar is weakening amid concerns over US government borrowing and the independence of the Federal Reserve.

‘Commodities and precious metals often strengthen when the dollar is weaker,’ said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management.

Ructions in the Japanese bond market, over concerns about the country’s big spending plans, have only added to the uncertainty.

Ipek Ozkardeskaya, senior analyst at Swissquote, said : ‘The global order is shifting, and trust is gone. Restoring it will take time. Against this backdrop, investors continue to flock to precious metals.’

The value of silver, a key component in everything from electric vehicles and solar panels, has also been pushed higher by strong demand from industry.

Silver has risen 55 per cent this year and has more than tripled in value since the start of 2025.

Chris Beauchamp, chief market analyst at investing and trading platform IG, said: ‘Gold’s astonishing start to the year continues, as the metal clears $5,000 for the first time, just days after silver took out the $100 level.

‘What began as a rally built on central bank buying has turned into one of the most spectacular momentum trades of recent years, made all the more impressive as bitcoin continues to struggle.

‘But with limited sources of fresh supply gold’s scarcity means it could go much further, even if some caution is required here – it has been months since we saw any sustained losses for precious metals, and the price continues to look vulnerable should upward momentum falter.’

Russ Mould, investment director at AJ Bell, added: ‘There may not be any big geopolitical news to rival last week’s Greenland drama, but internal tensions in the US are helping to keep precious metals prices elevated.’