Gold surged to a record high above $US5,000 an ounce today, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical tensions.
Gold soared 64 per cent in 2025, underpinned by sustained safe-haven demand, US monetary policy easing, robust central bank purchases — with China extending its gold-buying spree for a fourteenth month in December — and record inflows into exchange-traded funds.
Today, spot gold rose 1.8 per cent to $5,071 per ounce by 1:10pm AEDT, while US gold futures for February delivery gained 1.9 per cent to $5,073 per ounce. Prices have gained more than 16 per cent this year.
That puts the Australian dollar gold price around $7,325.
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“We expect further upside. Our current forecast suggests that prices will peak at around $US5,500 later this year,” Philip Newman, director at Metals Focus, said.
“Periodic pullbacks are likely as investors take profits, but we expect each correction to be short-lived and met with strong buying interest.”
The new records repeatedly reached for gold prices through 2025 did not deter small investors from wanting a piece of the precious metal for themselves.
Australian bullion sellers experienced lengthy queues, with the Perth Mint reporting thousands of customers queuing weekly in October, to buy bars or sell jewellery.
The trend continued into the new year, with buyers once again lined up in Sydney’s CBD in January, although in modest numbers.
People lined up outside ABC Bullion in Sydney’s CBD on January 7. (ABC News: David Taylor)
Greenland threats, Ukraine-Russia reduce risk appetite
Escalating friction between the United States and NATO over Greenland has added fresh momentum to gold’s advance this year on expectations of more financial and geopolitical uncertainty.
On the geopolitical front, Ukraine and Russia ended a second day of US-brokered talks in Abu Dhabi over the weekend without a deal, with more discussions expected next weekend, even as overnight Russian air strikes knocked out power for over 1 million Ukrainians amid sub-zero cold.
Adding to the uncertainty, US President Donald Trump said on Saturday he would impose a 100 per cent tariff on Canada if it followed through on a trade deal with China, warning Canadian Prime Minister Mark Carney that a deal would endanger his country.
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“Our forecast for the year is that gold will see a high of $US6,400 an ounce with an average of $US5,375,” independent analyst Ross Norman said.
Elsewhere on precious metals markets, spot silver rose 5 per cent to about $US108 per ounce, spot platinum was up 2.9 per cent to $US2,845 per ounce, while spot palladium rose about 2 per cent to $US2,050 per ounce.
Silver climbed above the $US100 mark for the first time at the end of last week, building on its 147 per cent rise last year as retail-investor flows and momentum-driven buying compounded a prolonged spell of tightness in physical markets for the metal.
ABC/Reuters