Gold Surpasses $5,000 Mark: A Historic Surge Amid Global Uncertainty

Sat Jan 31 2026 17:36:55 GMT+0200 (Eastern European Standard Time)

Gold prices have soared past $5,000 an ounce for the first time, driven by geopolitical tensions, trade threats, and a flight to safer investments as financial markets face heightened uncertainty.

In an unprecedented shift, the price of gold has crossed the $5,000 per ounce threshold, bolstered by concerns over US-NATO relations, President Trump's trade policies, and a volatile economic landscape. Silver, too, is experiencing a surge, exceeding $100 an ounce. Central banks and private investors alike are accelerating their gold purchases amid fears of inflation and interest rate cuts, while cultural factors are also stimulating demand in markets like India and China.

The price of gold has risen above $5,000 (£3,659) an ounce for the first time ever, extending a historic rally that saw the precious metal jump by more than 60% in 2025.

It comes as tensions between the US and NATO over Greenland have added to growing concerns about financial and geopolitical uncertainty.

US President Donald Trump's trade policies have also worried markets. On Saturday he threatened to impose a 100% tariff on Canada if it strikes a trade deal with China.

Gold and other precious metals are seen as so-called safe-haven assets that investors buy in times of uncertainty. On Friday, silver topped $100 an ounce for the first time, building on its almost 150% rise last year.

Demand for precious metals has also been driven by a range of other factors including higher-than-usual inflation, the weak US dollar, buying by central banks around the world and as the US Federal Reserve is expected to cut interest rates again this year.

Wars in Ukraine and Gaza, as well as Washington seizing Venezuelan President Nicolás Maduro, have also helped push up the price of gold.

One of the biggest appeals of gold is its relative scarcity. Only around 216,265 tonnes of the metal have ever been mined, according to the World Gold Council trade association.

That's enough to fill between three to four Olympic-sized swimming pools. The majority of that was only extracted from the earth since 1950, as mining technology advanced and new deposits were discovered.

The US Geological Survey estimates that another 64,000 tonnes of gold can still be mined from underground reserves, although the supply of the metal is predicted to plateau in the coming years.

Gold saw a blockbuster year in 2025, with its biggest annual gain since 1979 as investors flocked to precious metals.

With financial markets spooked by concerns including Trump's tariffs and fears that artificial intelligence-related stocks are overpriced, gold repeatedly hit new record highs.

But not everybody is buying gold for purely investment reasons. In many cultures, the metal is purchased during festivals or given as gifts at celebrations such as weddings. The start of this year has seen gold continue to rally but experts warn of the potential for unexpected news that might negatively impact prices.