The price of gold has climbed above $5,000 an ounce for the first time in history, extending a dramatic rally that saw the precious metal surge more than 60% over the past year.

Analysts attribute the rally to a mix of financial uncertainty, inflationary pressures, and heightened geopolitical tensions, most recently between the United States and NATO over strategic interests in Greenland. Investors are flocking to gold as a safe-haven asset amid fears of escalating disputes and instability in global markets. Gold reached a fresh all-time high, crossing $5,100 an ounce on Monday before slightly paring gains to last trade at $5,086. Meanwhile, U.S. gold futures for February rose 2.1%, reaching $5,087 an ounce.

The surge comes as recent flashpoints, from Greenland and Venezuela to the Middle East, underscore elevated geopolitical risk, reinforcing gold’s appeal as a hedge against uncertainty. “The recent further leg up in gold and silver prices has arrived on the back of geoeconomics issues related to Greenland,” HSBC wrote in a note last week.

Silver also benefited, with spot prices jumping 4.9% to $107.9 per ounce, boosted by both industrial demand and safe-haven buying. Analysts at Union Bancaire Privée noted that sustained demand from institutional and retail investors has driven the rally. “We anticipate that gold should enjoy another strong year, reflecting ongoing central bank and retail investment demand, with a year-end target price of USD 5,200 per ounce,” UBP said.

Central bank purchases remain robust as well, averaging around 60 tonnes a month, far above the pre-2022 average of 17 tonnes, reflecting a continued shift by emerging-market central banks into gold reserves. Goldman noted that hedges against fiscal and geopolitical risks are likely to remain stable throughout 2026, supporting the metal’s upward trajectory.

The spike in gold prices has reverberated across global markets, affecting currencies, bonds, and commodity-linked investments. Central banks and institutional investors are increasing holdings, while retail demand, particularly for coins and bars, has surged. Some experts warn that if geopolitical tensions continue or escalate, gold could test even higher levels, potentially reshaping the dynamics of safe-haven investing for the remainder of 2026.