Gold prices surged above $5,200 an ounce, reaching a record high as investors sought safety amid economic and geopolitical uncertainty. The yellow metal extended its historic rally, following a 64% gain in 2025 driven by safe-haven demand, US monetary policy easing, strong central bank purchases, and record inflows into exchange-traded funds. China continued its gold-buying spree for a fourteenth consecutive month in December, further supporting prices, which have already gained over 17% this year.
Analysts attribute the latest surge to a crisis of confidence in US policy and assets, sparked by recent unpredictable decisions from the Trump administration. In recent days, President Trump stepped back from threats to impose tariffs on European allies over Greenland, threatened a 100% tariff on Canada related to its trade deal with China, and proposed 200% tariffs on French wines and champagnes, aiming to pressure French President Emmanuel Macron into joining his Board of Peace initiative. Observers have expressed concern that this board could challenge the UN’s central role in global conflict resolution, though Trump has stated it would work in coordination with the United Nations.
