Gold prices surged past $5,000 an ounce on Monday to a record high, reinforcing bullion’s status as a safe haven amid a weaker US dollar and simmering geopolitical tension.
Gold, which is widely viewed as a hedge against inflation, rose 1.67 per cent to $5,072.62 an ounce, data from GoldPrice.org showed.
This has extended a rally that drove up gold prices about 18 per cent this year as investors seek a safe haven in precious metals.
Last week, gold recorded its best week since the financial crisis in 2008.
“This is an option for investors to diversify their exposure to monetary and fiscal policy uncertainty,” Samantha Dart, co-head of global commodities research at Goldman Sachs, said.
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Bullion added 64 per cent to its value last year, its biggest annual rise since 1979, driven by a mix of safe-haven demand and bets on US rate cuts.
The surge in gold to record highs comes after a turbulent week where tension over Greenland and Iran unsettled investors, while markets remained alert after major spikes in the Japanese yen.
Analysts expect further increases in gold prices, with a high of about $5,500 later in the year.
“We expect further upside (for gold). Our current forecast suggests that prices will peak at around $5,500 later this year,” Philip Newman, director at Metals Focus, said.