Gold Breaks Above $5,100 as Global Risks Fuel Demand for Safe Havens

Gold prices climbed to an unprecedented level on Monday, briefly topping $5,100 an ounce as demand for safe-haven assets intensified. Spot gold rose as much as 2.4% to $5,102 before easing slightly, while U.S. gold futures also advanced sharply, underscoring the strength of investor appetite for the metal.

The rally has been driven by a string of global flashpoints, from tensions linked to Greenland and Venezuela to ongoing instability in the Middle East. These developments have heightened geopolitical uncertainty, reinforcing gold’s role as a hedge during periods of market stress. Analysts noted that geoeconomic risks, rather than short-term financial factors, are increasingly shaping price movements in precious metals.

Silver joined the surge, with spot prices jumping nearly 5% to around $108 an ounce. While it benefits from the same safe-haven flows as gold, silver has also been supported by industrial demand, adding momentum to its advance.

Market strategists say the current rally reflects broad-based participation. Both institutional and retail investors have continued to add exposure, while central banks remain aggressive buyers. Analysts at Union Bancaire Privée expect gold to remain strong through the year, citing persistent investment demand and setting a year-end target of $5,200 an ounce.

Large investment banks have echoed that optimism. Goldman Sachs recently raised its gold price forecasts, arguing that demand has expanded beyond traditional channels. Holdings in Western gold exchange-traded funds have risen by roughly 500 tonnes since the start of 2025, while physical purchases by high-net-worth families and other newer hedging strategies have become increasingly important.

Central banks, particularly in emerging markets, remain a key pillar of support. According to Goldman’s estimates, official sector purchases are now averaging around 60 tonnes per month, far above pre-2022 levels, as countries continue to diversify reserves away from currencies.

Crucially, analysts believe these flows are likely to persist. Unlike election-related hedges that tend to unwind quickly, concerns around fiscal sustainability, geopolitical fragmentation and long-term policy risks are expected to linger. As a result, banks see gold’s elevated price levels not as a temporary spike, but as a higher base from which the metal could climb further into 2026.