Gold prices today soared to an all-time high above $5,000 an ounce, extending a historic rally as investors flocked to safe-haven assets amid rising geopolitical tensions.
Gold surged 64% in 2025, supported by sustained safe-haven demand, easing monetary policy in the US, strong central bank purchases (which China extended for 14 months in December), and record inflows into exchange-traded funds (ETFs).
Today, spot gold rose 1.8% to $5,071 an ounce by 1:10pm AEDT, while US gold futures for February delivery rose 1.9% to $5,073 an ounce. Prices have increased more than 16% this year.
This brings the gold price to the Australian dollar to around $7,325.
“We expect further upside. Our current forecast is for prices to peak around $5,500 in the second half of this year,” said Philip Newman, director at Metals Focus.
”While there will likely be periodic pullbacks as investors take profits, we expect each correction to be short-lived and attract strong buying interest.”
Even as gold prices repeatedly hit new records through 2025, retail investors remained motivated to own the precious metal.
Australian bullion sellers faced long queues Perth Mint reports thousands of customers queued each week in Octoberto buy bars or sell jewelry.
The trend continued into the new year, with buyers once again lining up in Sydney’s CBD in January, albeit in smaller numbers.
People line up outside ABC Bullion in Sydney’s CBD on January 7. (ABC News: David Taylor)
Greenland threat, declining risk appetite by Ukraine and Russia
Expectations that escalating tensions between the United States and NATO over Greenland will further increase financial and geopolitical uncertainty have added new momentum to gold’s rise this year.
On the geopolitical front, Ukraine and Russia Second day of US-mediated talks ended without agreement in Abu Dhabi over the weekendFurther debate is expected next weekend, despite Russian night airstrikes leaving more than a million Ukrainians without power amid sub-zero temperatures.
Adding to the uncertainty, US President Donald Trump warned on Saturday that he would impose 100% tariffs on Canada if it complies with its trade deal with China. Canadian Prime Minister Mark Carney says deal puts his country at risk.
“Gold prices will peak at $6,400 an ounce this year and average $5,375 an ounce,” independent analyst Ross Norman said.
In other precious metal markets, spot silver rose 5% to about $108 an ounce, spot platinum rose 2.9% to $2,845 an ounce, and spot palladium rose about 2% to $2,050 an ounce.
Silver surpassed the $100 milestone for the first time last weekend, following a 147% rally last year, as retail investor flows and momentum buying exacerbated long-term tightness in the metal’s physical markets.
ABC/Reuters