Gold tops $5,000 for first time ever, adding to historic rally

Gold prices have surpassed $5,000 (£3,659) an ounce for the first time, continuing a remarkable surge that saw the metal increase by over 60% in 2025. This rise is linked to escalating tensions between the US and NATO regarding Greenland, which have raised fears about financial and geopolitical instability. Concerns are also mounting due to US President Donald Trump’s trade strategies. On Saturday, he threatened to impose a 100% tariff on Canada if it reaches a trade agreement with China. Investors often turn to gold and other precious metals as safe-haven assets during uncertain times. The demand for gold has also been influenced by several factors, such as higher inflation rates, a declining US dollar, increased purchases by central banks globally, and expectations that the US Federal Reserve will lower interest rates again this year. Ongoing conflicts in Ukraine and Gaza, along with Washington's actions against Venezuelan President Nicolás Maduro, have further contributed to the rising gold prices. Additionally, silver has also seen a significant increase, surpassing $100 an ounce for the first time, following a nearly 150% rise last year.