Gold surges to historic $5,000 mark per ounce: What's driving yellow metal so high?

In line with investors flocking towards the precious metal amid escalating global uncertainties, gold has surged to an all-time high of $5,000 (£3,600) per ounce.

It was observed that spot gold rose 1.98% to $5,081.18 per ounce by 3:23 am (GMT), after reaching $5,092.71 earlier. US gold futures for February delivery jumped 2.01% to $5,079.30 per ounce.

The yellow metal soared 64% in 2025, driven by easing US monetary policy, frequent central bank purchases, and growing demand for safe-haven among investors cautious of the global uncertainties.

It proved surprising, particularly as China maintained its gold-buying spree for a 14th consecutive month in December. In 2026 so far, prices have gained over 17%, as per The Independent.

Kyle Rodda, a senior market analyst at Capital.com, said the recent uptick is primarily driven by a "crisis of confidence" in the US administration, aggravated by US President Donald Trump's unpredictable, erratic decision-making.

What further led to fluctuations in the markets is Trump's sudden withdrawal from tariff threats against European allies and controversial trade comments.

Yen's increasing strength has also caused the dollar weaken, making gold more affordable for holders of other currencies.

Philip Newman, the director at Metals Focus, projected further price hikes, estimating that gold might peak at around $5,500 later this year.

In the midst of this, spot silver skyrocketed 5.79% to $108.91 per ounce, while platinum and palladium also touched record highs.