"Crisis of confidence in U.S. assets"…Gold tops $5,100 an ounce

As geopolitical uncertainty persists, gold prices hit a fresh record on the 26th, breaking above $5,100 an ounce.

According to Reuters on the 26th (local time), spot gold rose 2.2% to $5,093.96 an ounce at 8:40 a.m. GMT in European trading. It briefly climbed past $5,110 an ounce during the session. U.S. gold futures for February delivery also gained by the same margin to $5,090.40 an ounce.

After surging 64% in 2025, gold has already added 18% so far this year. The rally has been driven by safe-haven demand, expectations of easier U.S. monetary policy, strong central-bank buying including China’s purchases for 14 consecutive months (including December), and record inflows into exchange-traded funds (ETFs).

Kyle Rodda, chief market analyst at Capital.com, said, “The latest catalyst is a crisis of confidence in the U.S. government and U.S. assets.” He added that last week the Trump administration’s unpredictable decision-making “fractured established norms, prompting investors to cling to gold as the only alternative,” further intensifying the move.

The previous weekend, U.S. President Donald Trump threatened to impose tariffs on European allies as leverage to seize control of Greenland, but quickly backed down after markets tumbled. Over the past weekend, however, he again said he would impose 100% tariffs if Canada follows through on its trade talks with China.

Trump also threatened to slap 200% tariffs on French wine and champagne in an effort to pressure France’s Emmanuel Macron to join the “Asset Peace Committee” initiative.

Meanwhile, the dollar was broadly weaker on Monday as the yen strengthened. Markets are closely watching the possibility of Fed intervention in the yen, and investors are cutting dollar positions ahead of this week’s Federal Reserve meeting. A weaker dollar makes dollar-priced gold cheaper for holders of other currencies.

Analysts forecast that gold could climb further to $6,000 this year, supported by rising geopolitical tensions across multiple regions and robust demand from central banks and retail investors. Philip Newman, managing director at Metals Focus, said, “We believe gold still has room to rise,” adding that “our current forecast is for it to reach about $5,500 in the second half.”

He said periodic pullbacks could occur as investors take profits, but any correction is likely to be short-lived, with strong buying expected to return.

Spot silver rose 4.8% to $107.903, and climbed as high as $109.44 during the session. Spot platinum gained 3.4% to $2,861.91 an ounce, after briefly hitting a record high of $2,891.6 earlier in the day. Spot palladium rose 2.5% to $2,060.70, marking its highest level in more than three years.

Kim Jung-a, contributing reporter kja@hankyung.com