Gold punched through $5,000 an ounce on Monday, setting a fresh record and reminding markets what panic buying looks like when it wears a shiny suit. The move came as investors leaned into the safest thing they know when geopolitics heats up and fiscal anxiety refuses to cool down.
The spot price of gold rose 1.2% and traded around $5,042 per ounce. US February gold futures were also up 1.2%, trading around $5,036. Silver joined the party, with spot silver jumping 3% to $106.1 per ounce, helped by industrial demand as well as the broader rush into precious metals.
The backdrop was not subtle. Tensions tied to flashpoints from Greenland to Venezuela to the Middle East kept risk appetite fragile, and gold regained its familiar role as a hedge when uncertainty shows up too often for comfort. HSBC linked the latest leg higher in gold and silver to geoeconomics, with Greenland part of the narrative that is keeping traders on edge.
Demand signals also looked stubbornly strong. Union Bancaire Privée pointed to steady buying from both institutions and retail investors, with an end of year target around $5,200 per ounce. Goldman Sachs described a broader base of demand, highlighting renewed inflows in Western ETFs, with holdings up roughly 500 tons since early 2025.
Central banks stayed aggressive buyers. Goldman Sachs estimated average purchases around 60 tons per month, far above the pre 2022 average of about 17 tons per month, with emerging market central banks continuing to shift reserves toward gold. Add persistent hedging tied to macro policy and fiscal durability concerns into 2026, and Goldman Sachs lifted its December 2026 forecast to $5,400 per ounce from $4,900.
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